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
Corporate Governance Reviews: A Practical Guide for New Jersey Companies
Every New Jersey company should periodically evaluate its governance framework. Strong corporate governance protects directors and officers, builds investor confidence, reduces litigation exposure, and positions a company for sustainable growth. The first quarter of the year is a great time to evaluate your corporate governance practices and perform any routine maintenance needed to keep that […]
Author: Ken Hollenbeck
What to Do After Being Served with a Lawsuit: Steps to Protect Your Legal Rights
Being served with a lawsuit is one of the most stressful legal events a business or individual can face. Whether the claim involves a contract dispute, an employment matter, an intellectual property issue, or another legal challenge, the actions you take in the first few days can significantly shape the outcome of your case. Acting […]
Author: Robert E. Levy
Will 2026 Be a Banner Year for SPACs? Understanding the Risks and Opportunities
Special Purpose Acquisition Companies (SPACs) continue to gain momentum as we move through 2026. After enduring a significant contraction following the 2021 boom and the regulatory scrutiny that followed, SPAC activity rebounded sharply in 2025 and now carries forward into 2026 with real momentum. The SPAC resurgence reflects broader improvements in both market conditions and the […]
Author: Dan Brecher
Why Compliance Monitoring Matters for NY and NJ Businesses
Compliance programs are no longer judged by how they look on paper, but by how they function in the real world. Compliance monitoring is the ongoing process of reviewing, testing, and evaluating whether policies, procedures, and controls are being followed—and whether they are actually working. What Is Compliance Monitoring? In today’s heightened regulatory environment, compliance […]
Author: Dan Brecher
When Are New Jersey Business Owners Personally Liable for Corporate Debt?
New Jersey personal guaranty liability is a critical issue for business owners who regularly sign contracts on behalf of their companies. A recent New Jersey Supreme Court decision provides valuable guidance on when a business owner can be held personally responsible for a company’s debt. Under the Court’s decision in Extech Building Materials, Inc. v. […]
Author: Charles H. Friedrich
Commercial Real Estate Trends to Watch in 2026
Commercial real estate trends in 2026 are being shaped by shifting economic conditions, technological innovation, and evolving tenant demands. As the market adjusts to changing interest rates, capital flows, and workplace models, investors, owners, tenants, and developers must understand how these trends are influencing opportunities and risk in the year ahead. Overall Outlook for Commercial […]
Author: Michael J. Willner
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.