RadioShack's (NYSE:RSH) largest shareholder, Standard General, agreed to a sale of the chain's brand name separate from its locations, starting at $20 million.
Standard General is already looking to buy hundreds of stores from the bankrupt retailer, reported Bloomberg. The plan to sell RadioShack's trademark and other intellectual property separate from the store leases means buyers can purchase only what they want, without having to claim responsibility for store locations.
The arrangements were outlined in a U.S. bankruptcy court as part of changes proposed by Standard General, which holds 10 percent of the company's stock and plans to buy as many as 2,000 stores.
Last month, when the shareholder agreed to bid on half the retailer's locations, they also planned to co-brand in up to 1,750 Sprint Corp. retail stores. A committee of unsecured creditors has objected to various aspects of the proposal.
Earlier this week, the retailer pushed back on creditors for criticizing the auction procedures and saying the process needed to move more quickly. RadioShack filed for Chapter 11 bankruptcy protection earlier this month and believes a drawn-out sale could further diminish the value of the company's assets.
A RadioShack lawyer, Tom Howley, told the court that Spring Communications is interested in bidding on the remaining RadioShack stores that might otherwise be liquidated.
-See this Bloomberg article
RadioShack pushing for faster sale of assets
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