RadioShack pushing for faster sale of assets

RadioShack (NYSE:RSH) pushed back on a creditor panel's criticism of its auction procedures, saying the sale of assets needs to move more quickly. The retailer, who filed for Chapter 11 bankruptcy protection earlier this month, said a drawn-out sale could diminish the value of the assets and further hinder recovery efforts.

In court papers, RadioShack referred to the assets as a "melting ice cube" that was losing value on a daily basis, reported Bloomberg.

RadioShack sought protection from creditors on Feb. 5. The company agreed to sell 1,500 to 2,400 location to its largest shareholder Standard General. Per the agreement, some of the stores would remain branded in a special section of up to 1,750 Sprint Corp. retail stores.

The bankruptcy deal does not keep another bidder from stepping in to acquire what remains of the 4,000 RadioShack locations. Amazon may step up to the plate. The e-commerce giant has shown interest in using the physical space to display hardware such as tablets, e-readers, smartphones, etc., or as potential pick-up and drop-off centers for online shoppers.

Standard General defended the defined auction procedures, calling the criticism a "litany of innuendo and irrelevant detail."

A hearing for the approval of the bid procedures is scheduled for Feb. 25.


For more:
-See this Bloomberg article

Related stories:
RadioShack may be down, but it's not totally out
RadioShack files for bankruptcy
RadioShack preparing to file for Chapter 7
RadioShack seeks funding; makes turnaround effort
RadioShack defends its balance sheet, discourages implications that it's for sale
 

Suggested Articles

Costco changes up its menu items, and Alibaba and Guess partner for a physical store.

Janey Whiteside, Walmart's new chief customer officer, is well acquainted with the importance of customer service in modern retail.

Whole Foods will offer deals on Amazon's Prime Day, and tariffs against China are causing pricing hikes.