Standard General has raised its bid for bankrupt retailer RadioShack (NYSE:RSH). On Tuesday, the hedge fund, which has agreed to buy about 1,740 stores and operate them in partnership with Sprint, raised its bid by $20 million and committed to keeping 7,500 RadioShack jobs, reported Reuters.
Following the first day of the auction, the two companies had ended in a standstill. Standard General had initially offered $145 million but disputes arose among creditors about how the hedge fund would pay for the bid.
Standard General pledged to forgive the $535 million financing package it gave to RadioShack at the close of 2014 but creditors did not agree, as this probably means they would never get back the money they are owed.
Liquidators have also been reported as making a bid, which would close all RadioShack locations and sell off its inventory.
The struggling retailer filed for Chapter 11 bankruptcy last month. If RadioShack doesn't make a sale by March 31, it will have to run up another month's worth of payments to vendors. Therefore, the retailer is pushing to expedite the sale of its assets.
-See this Reuters article
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