RadioShack Corp the electronics chain based in the US filed on Wednesday for bankruptcy protection.
RadioShack has filed for bankruptcy for the second time in just two years. The company is battling a tough, competitive retail environment and a partnership that has not worked out with Sprint Corp, the wireless provider.
Fort Worth, Texas-based General Wireless Operations Inc., dba RadioShack, filed for bankruptcy Wednesday in DE, the second time it has done so in the past two years. Several hundred of the remaining stores will be turned into Sprint-only stores, according to the Associated Press.
In 2015, during the first bankruptcy process, about 1,700 RadioShack stores were closed. In addition, the chain says it is closing the RadioShack portion of the 360 stores that it shares with Sprint, and evaluating whether to do the same in 971 other shared stores. The mobility sales, though, have been "surprisingly poor" of late, which led to the latest filing, said Dene Rogers, RadioShack's president and chief executive officer, in a statement.
General Wireless, which acquired RadioShack in April 2015, plans to sell RadioShack store leases at auction and has retained A&G Realty Partners to assist.
RadioShack said it has been winding down business at 187 stores with the slowest sales and highest rent.