RadioShack stores in Fort Worth are closing, including in Sundance Square

RadioShack has started to close some of its area stores, including a high-profile concept store in downtown Fort Worth.

The store at Sundance Square, which opened in October of 2013 and was listed among closures expected to be completed by sometime next month, was shut down on Friday. By Sunday, its signage had been removed and the windows covered with paper. On Monday, workers were removing boxes from the store.

RadioShack is seeking bankruptcy court permission to close as many as 2,100 of its 4,000 company-owned locations nationwide as it moves to quickly reduce costs. It has proposed a deal to sell between 1,500 and 2,400 stores to Standard General, a New York hedge fund, which has a deal with Sprint to put wireless stores inside many of them.

On Sunday, the U.S. bankruptcy trustee filed an objection to the plan, citing concerns about the retailer’s privacy policy and a $6 million breakup fee pledged to Standard General if the sale does not go through. The objection is scheduled to be discussed at a bankruptcy court hearing on Friday.

Fort Worth-based RadioShack filed for bankruptcy court protection in Wilmington, Del., on Feb. 5 after nearly three years of losses. The next day it released a list of more than 1,700 stores it said would be closed in three waves. That list included about 20 Tarrant County stores, with eight in Fort Worth and five in Arlington.

Clearance sales began at many stores in the days before the bankruptcy filing. Fort Worth RadioShack stores in Montgomery Plaza and on Camp Bowie Boulevard have also closed. A spokeswoman could not say Monday exactly how many stores have been closed.

Sundance Square officials said the company approached them about closing the downtown store quickly and moving the inventory to another location.

“Sundance Square was more than happy to oblige,” said Carolyn Alvey, a spokeswoman for the downtown entertainment and shopping district.

The store, at the corner of Third and Commerce streets, was in a prime location and should lease quickly. It’s across Commerce Street from where an H&M apparel store will open later this year in the former Barnes & Noble space.

RadioShack opened its concept store in Sundance Square to great fanfare, with CEO Joseph Magnacca speaking to a crowd of downtown leaders and current and former employees, including two previous CEOs. The store had a retro design and was highlighted with historic details. It was one of a couple of dozen concept stores that the consumer electronics company was touting in its turnaround efforts.

But the company could not afford to make significant changes to most of its stores and sales continued to decline.

In objecting to the company’s bankruptcy plan, the U.S. trustee said that consumer privacy information is not addressed in the sale process and that a consumer privacy ombudsman should be appointed.

The trustee argues that RadioShack’s own privacy policy prohibits the sale of customer information, including names, addresses, telephone numbers, Social Security numbers and credit card account numbers. The store sale should only move forward if RadioShack can guarantee that customer information is not sold or transferred.

The trustee also objected to a $6 million breakup fee that Standard General would receive if it does not ultimately buy the 1,500 stores. The trustee estimated the sale price would have to be near $200 million in order to meet the usual 3 percent breakup fee.

“The proposed breakup fee is not appropriate in this context where the purchase price is unknown and any prospective bidder would have to lodge a bid in the face of a $6 million obstacle,” the Saturday filing said. “In this light, the breakup fee may create an unfair barrier to efficacious and bona fide bidding.”

Separately, RadioShack asked the court for permission to pay its attorneys and other bankruptcy professionals who are helping the company manage its reorganization.

This story was originally published February 16, 2015 at 1:36 PM with the headline "RadioShack stores in Fort Worth are closing, including in Sundance Square."