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.
-See this Bloomberg article
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