RadioShack has filed a bankruptcy liquidation plan explaining how the remaining assets of the once-iconic, Fort Worth-based consumer electronics retailer will be distributed.
The plan follows the sale of about 1,700 of the chain’s stores — as well as the rights to its name — to a unit of the New York hedge fund Standard General. Standard General is running the locations under a co-branding arrangement with Sprint.
In addition to buying the stores for about $145.5 million, Standard General purchased data on about 67 million customers in a $26.2 million deal for assets, including the RadioShack name. The ongoing store operation continues to be run out of the chain’s riverfront headquarters in Fort Worth under Ron Garriques, a former Dell executive who was named CEO in April.
The plan filed Friday in U.S. Bankruptcy Court in Delaware covers what’s left of the company’s estate, including some warehouses that are being sold. It doesn’t include specific distribution amounts, but general unsecured creditors and other claimholders will get a pro rata share of the assets remaining in a liquidating trust. Some holders may get additional distributions.
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Holders of “dark store” claims will receive cash equal to 75 percent of the amount of their claim, unless they agree to less-favorable treatment. Dark stores are locations that RadioShack stopped operating on or after its Feb. 5 bankruptcy filing and whose contracts and unexpired leases were rejected by the company effective during February.
A trust will be formed to liquidate causes of action, resolve disputed claims, sell any remaining assets and property, and make distributions to creditors.
Under the proposed plan, gift-card holders get 60 days from the effective date of the plan to file claims.
A hearing is scheduled Tuesday to approve the sale of property in Hagerstown, Md., for $11.4 million and properties in Fort Worth and Woodland, Calif., for $39.3 million.
A hearing to seek approval of the disclosure statement, which explains the plan to creditors, is set for June 25.
RadioShack entered bankruptcy with more than 4,000 stores, listing assets of $1.2 billion and debt of $1.38 billion.