Fort Worth-based RadioShack has asked a bankruptcy judge to approve bidding procedures for auctioning hundreds of store leases not being taken over by Standard General, and suggested that a hearing to approve the sales be held on Feb. 25.
The consumer-electronics chain, with about 4,000 locations, sought protection from creditors a week ago in Wilmington, Del., saying it wanted to close “as many stores as possible.” It has an agreement to sell 1,500 to 2,400 of its locations to a unit of hedge fund Standard General, its biggest shareholder.
Standard General has a deal with the wireless carrier Sprint to set up stores-within-stores at as many as 1,750 locations. The rest will be closed and their inventory liquidated.
RadioShack wants the matter resolved quickly so it doesn’t have to keep paying for the unwanted stores. It launched clearance sales at many stores last week.
“Without an efficient and expedient process for monetizing the leases, administrative costs of maintaining the leases may exceed the value that could be obtained,” RadioShack said in court papers.
U.S. Bankruptcy Judge Brendan Shannon last week allowed RadioShack to begin store-closing sales through the weekend. On Monday, he let the sales continue. The company will return to court Feb. 20 to seek final approval for the store-closing program.