Business

Hedge fund closes deal for RadioShack name

General Wireless, a unit of Standard General, acquired 1,743 RadioShack locations out of bankruptcy.
General Wireless, a unit of Standard General, acquired 1,743 RadioShack locations out of bankruptcy. AP

It’s official: RadioShack lives on.

General Wireless Operations said Wednesday it had closed on its $26.2 million purchase of the RadioShack brand, which was acquired in a bankruptcy court auction.

So the RadioShack name can stay on 1,743 RadioShack stores purchased by the unit’s parent, the Standard General hedge fund, earlier this year.

Ron Garriques, a former executive with Motorola and Dell who took over as RadioShack’s chief executive officer in April after the sale to Standard General was approved, said the Fort Worth-based retailer is “excited to be moving forward as a new and reinvigorated company under one of the most recognized consumer brand names of all time.”

The iconic 94-year-old consumer electronics retailer filed for bankruptcy in February after nearly three years of losses and declining sales left it with dwindling cash.

More than half of the company 4,000-plus company-owned stores have been closed. And last week, a California real estate company closed on a bankruptcy court deal to acquire six properties including four warehouses in Fort Worth.

Most of the RadioShack stores that remain open are being co-branded with Sprint, which will operate wireless stores inside. Sprint said Wednesday that it will have a presence in 1,435 Sprint-RadioShack stores by next week, with about 300 stores completely renovated to the new store-within-a-store model and the rest to be renovated by the end of the year.

“The Sprint Store at RadioShack will give customers more convenient locations where they can buy our Sprint, Boost and Virgin Mobile products,” said Jaime Jones, president, Postpaid and General Business for Sprint, in a statement.

Steve Kaskovich, 817-390-7773

Twitter: @stevekasko

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