It looks like RadioShack in Foster Township will remain open in the midst of Thursday’s news of RadioShack Corp. filing for Chapter 11 bankruptcy protection.
The store location was not on the potential store closing list released on the company’s website. The local store manager on Friday declined to comment, referring questions to RadioShack Corp.
Meanwhile, franchise RadioShack locations in Kane and Coudersport are safe from being shut down. However, products from RadioShack to be put on the store shelves could be delayed with a warehouse change.
On Thursday, RadioShack Corp. and some of its U.S. subsidiaries filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware.
As part of an asset purchase agreement, General Wireless has agreed to acquire between 1,500 and 2,400 of RadioShack Corp.’s U.S. company-owned stores. In an agreement with Sprint, General Wireless has agreed to establish a dedicated mobility “store within a store” retail presence in up to 1,750 of the acquired stores. The agreement-in-principle is partly subject to court approval.
Additionally, RadioShack Corp. has filed a court motion to move forward with closing remaining company-owned stores under an agreement with Hilco Merchant Resources. Underperforming stores that would be shut down are expected to sell remaining inventory.
RadioShack Corp. officials say negotiations are underway with interested parties to sell the company’s remaining assets.
“These steps are the culmination of a thorough process intended to drive maximum value for our stakeholders,” RadioShack Corp.’s chief executive officer Joe Magnacca said in a prepared statement.
As restructuring continues, Photo & Sound Shoppe owner Jim Greville said it is business as usual 101 Fraley St., Kane. He has been a RadioShack dealer since 1981.
But a warehouse change — from Hagerstown, Md., to Fort Worth, Texas — is expected to mean products to the RadioShack would arrive later.
“I wouldn’t say I’m worried,” Greville said. If products do not arrive, he has a backup plan.
In recent years, Greville said he has seen a decline in electronics sales, since he moved away from being Verizon dealer.
But he also has flame-resistant clothing for oil and gas workers — products that have sold well “by leaps and bounds.”
RadioShack Corp. has about 4,000 company-owned stores in the country. Its more than 1,000 dealer franchise stores in 25 countries, stores operated by its Mexican subsidiary and its Asia operations are not included in the Chapter 11 filing or the recently announced agreements.
No one was available for comment on Friday at the RadioShack at the Valley Hardware, 9 Ice Mine Road, Coudersport.
