RadioShack, which struggled to navigate the headwinds of online shopping, has filed for Chapter 11 bankruptcy protection.
The electronics chain will sell up to 2,400 of U.S. stores to a subsidiary of its largest shareholder, Standard General, The Associated Press reports. Sprint will operate a "store within a store" in up to 1,750 of those locations.
“We’ve proven that our products and new offers drive traffic to stores, and this agreement would allow Sprint to grow branded distribution quickly and cost-effectively in prime locations,” said Sprint CEO Marcelo Claure in a statement. “Sprint and RadioShack expect to benefit from operational efficiencies and by cross-marketing to each other’s customers.”
The new stores would be primarily branded as Sprint. The deal would more than double the telecommunication company's retail presence.
Online retailer Amazon might also be a buyer for some Radioshack stores, Bloomberg reports.
Radioshack, which is based in Fort Worth, Texas and has more than 5,000 stores nationwide, is in discussions to sell the rest of its assets. The company was last profitable in 2011.
This may not be the end, though. Radioshack has about 1,000 franchises worldwide that are not included in the bankruptcy, AP reports.
