RadioShack Chain is Closing 14 Long Island Stores in Recent Bankruptcy Filing

by San Antonio Attorney

The embattled consumer electronics company is asking for a court approval to shutter 14 of its stores in Long Island in April, based on documents filed.

RadioShack, founded in Texas in 1921, filed a Chapter 11 bankruptcy petition again after emerging from its first bankruptcy in 2015.

The company is hoping that by March 28 it would be able to finish the liquidation sales of its187 stores with the most expensive rent and lowest sales. The stores that are initially affected are the ones located at 68 Main Street in Southampton and 26 E. Montauk Highway in Hampton Bays, based on a court filing on March 9.

Around 365 other stores could shutter or be moved to wireless provider Sprint, which manages mini-stores offering cellular devices and  plans within certain RadioShack stores, based on court filings. Sprint said it plans to convert several hundred RadioShack locations into Sprint corporate-owned stores.

Shops in this subsequent group are estimated to finish liquidation sales and be unoccupied by April 4.

The company said it is currently exploring various options for the outstanding 1,000 shops across the country.

At present, there are roughly 28 locations in Long Island, the company website says. Five other stores on the Island were vacated just recently, according to court papers filed. The most recent closures will leave behind approximately 14 stores in Long Island for the time being.

RadioShack was acquired by General Wireless Operations Inc. after the chain filed for bankruptcy in 2015. The new owner tried to rejuvenate its business by co-branding retailers with the wireless carrier in order to compete with the big players.

General Wireless, an partner of Standard General LP hedge fund that bought RadioShack in 2015, declared bankruptcy and listed debts and assets between $100 million and $500 million.

 

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