RadioShack to auction brand name
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Bankrupt electronics chain RadioShack is hoping to get $20 million for its brand in an auction scheduled for March 23.
The move to split the brand from its other assets will allow a buyer to bid on the brand without being forced to buy store leases.
The lead bidder is hedge fund Standard General LP, which is already RadioShack’s largest shareholder. The company has already committed to buying a many as 2000 of the chain’s 4000 store leases across the US.
US Bankruptcy Judge Brendan Shannon in Delaware has approved the brand sale plan, with the lead bid set at $20 million.
Standard General plans to save the RadioShack business by co-locating many stores with Sprint Corp, a wireless telco carrier.
Meanwhile, video game retailer GameStop Corp has lodged a bid for some of the 4000 store leases, largely as a means to expand its retail footprint for its Spring Communications wireless unit.
Questions & Answers
Q.Who is currently the main bidder for the RadioShack brand name?
Who is currently the main bidder for the RadioShack brand name?
Hedge fund Standard General LP is the lead bidder for the RadioShack brand. They are already the electronics chain's largest shareholder and have committed to buying many of its store leases.
Q.What is the primary bidder's strategy for the future of RadioShack stores?
What is the primary bidder's strategy for the future of RadioShack stores?
Standard General plans to save the RadioShack business by co-locating many of the stores with Sprint Corp, a wireless telecommunications carrier. This strategy aims to keep the brand operational.
Q.When is the auction for the RadioShack brand scheduled to take place?
When is the auction for the RadioShack brand scheduled to take place?
The auction for the RadioShack brand is scheduled for March 23. This is when the company hopes to secure the $20 million target for its brand name.
Q.Has any other company shown interest in acquiring some of RadioShack's assets?
Has any other company shown interest in acquiring some of RadioShack's assets?
Yes, video game retailer GameStop Corp has lodged a bid for some of the 4000 store leases. Their interest is largely to expand the retail footprint for their Spring Communications wireless unit.
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