US electronics retailer RadioShack Corp. filed for bankruptcy protection on Thursday after reaching a deal to sell as many as 2,400 of its stores following prolonged financial troubles.
The firm, which posted losses for 11 consecutive quarters, said it has a deal in place under which hedge fund Standard General will acquire between 1,500 and 2,400 RadioShack stores and partner with wireless operator Sprint to operate as many as 1,750 of the outlets, Wall Street Journal reported.
RadioShack, a 94-year-old brand, also reached a deal with a liquidation firm to close underperforming stores. Potential buyers will be able to bid on RadioShack’s assets during bankruptcy.
“These steps are the culmination of a thorough process intended to drive maximum value for our stakeholders,” Chief Executive Joe Magnacca said in a statement, according to Reuters.
RadioShack listed US$1.2 billion of assets and US$1.39 billion of debts in its Chapter 11 filing in a Delaware court.
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