Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
RadioShack Preparing For Bankruptcy Courts
Author: Joel R. Glucksman
Date: February 4, 2015
Key Contacts
Back
Electronics retailer RadioShack is considering a move that would see it selling assets out of bankruptcy.
Radioshack is preparing to file for protection under Chapter 11 of the bankruptcy law as early as next month, according to Bloomberg. It is also in talks with Sprint Corp. to sell the leases on some of its stores.
RadioShack has experienced 11 consecutive quarters of losses as many of its primary consumers have moved to Internet shopping, the news source explained. A court restructuring would, ideally, allow it to emerge as a leaner business. This could include downsizing to between 2,000 and 3,000 stores, compared to the more than 4,000 it currently owns. It is also looking for a potential lender to finance its trip through bankruptcy court.
In September, RadioShack reported larger losses than were expected, according to Reuters. This prompted the retailer to warn at the time that a bankruptcy filing was a possibility. Salus Capital Partners has already said that it would provide $500 million to the struggling retailer a debtor-in-possession loan.
Shares in the company had fallen almost 60 percent between its bankruptcy warning in September and the market’s close on Jan. 13, the news source reported.
As an alternative to the plan offered by Salus Capital Partners, RadioShack’s biggest shareholder Standard General LP has arranged a rescue package in the form of a restructuring loan including plans for asset sales in bankruptcy, according to Bloomberg.
As RadioShack shrinks, Sprint seems to be poised to gain from its losses. Marcelo Claure, CEO of Sprint Corp., told investors at a recent Citigroup Inc. conference that the company would be adding retail locations, the news source reported.
“This is a year in which we intend to grow our distribution dramatically,” Claure said at the conference. “You are going to see the opening of more and more Sprint stores as this is one area that we work on.”
- Practices: Corporate Transactions & Business, Bankruptcy & Creditors' Rights, Bankruptcy Litigation
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Fort Monmouth Redevelopment and the Transformation of Monmouth County Real Estate
The Fort Monmouth redevelopment has entered its execution phase, and it is repositioning the broader Monmouth County real estate market. When Netflix and the Fort Monmouth Economic Revitalization Authority closed on the 292-acre Mega Parcel in December 2025, the transaction did more than hand over a deed. It marked the moment Fort Monmouth stopped being […]
Author: Donald M. Pepe
Local Zoning and Land Use Rules Every New Jersey Rental Property Owner Should Understand
Owning a residential rental property in New Jersey involves more than finding tenants and collecting rent. Property owners must comply with a combination of state laws, municipal ordinances, building and housing codes, and zoning and land use regulations. These requirements can affect everything from the number of dwelling units permitted at a property to whether […]
Author: Donald M. Pepe
Real Estate Litigation Explained: Top 5 Disputes and How to Avoid Them
The five most common real estate disputes are breach of contract claims, landlord-tenant conflicts, zoning and land use disagreements, construction claims, and boundary disputes. Understanding why each arises, and taking preventive steps early, can help property owners, tenants, developers, and investors avoid costly litigation. Key Takeaways: Real estate transactions are complex endeavors involving numerous parties […]
Author: Paul Grossman
When a Child Turns 18: The Gap in Your Family’s Estate Plan
Once a child turns 18, parents lose the automatic legal authority to make medical and financial decisions on their behalf, even if the child still lives at home or remains on the family’s insurance. Three documents close that gap: a durable power of attorney, a health care proxy or directive, and a HIPAA authorization. For […]
Author: George McGowan
Business Mediation: An Overview and Practical Tips
Business mediation is a confidential, voluntary process in which a neutral third party helps companies negotiate a resolution to a commercial dispute without going to trial. Because working with a mediator is very different from litigating in the courtroom, it is important to understand how commercial mediation works, when it makes sense for your dispute, […]
Author: Paul Grossman
Top 5 Causes Leading to Construction Defect Litigation
The five most common causes of construction defect litigation are design defects, substandard materials, workmanship defects, code violations, and subsurface defects. Because these flaws can compromise a building’s integrity, functionality, or safety, they frequently lead to disputes involving multiple parties and high financial stakes. Key takeaways: What is Construction Defect Litigation? Construction litigation is complex, […]
Author: Paul Grossman
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.