The new owner of the RadioShack brand, General Wireless Operations Inc., just filed for Chapter 11 in the United States Bankruptcy Court for the District of Delaware. This is the second Chapter 11 filing for the brand in two (2) years (a chapter 22 filing, like the recent EMS brand filing).
The Company is reportedly closing about 200 stores and evaluating options on the remaining 1,300 stores. The Company cited poor performance of mobility sales as one reason for the bankruptcy filing.
The filing comes directly on the heels of appliance and electronics seller HH Gregg’s Chapter 11 bankruptcy filing earlier this week.
RadioShack and a number of other retailers are attempting to restructure/reduce debt, while also seeking a new footprint. In the last year, Sports Chalet, Sports Authority, EMS, Eastern Outfitters, Golfsmith, BCBG, Fairway Market, The Limited, American Apparel, and HH Gregg have all gone the Chapter 11 route for this financial strategy.