Hedge Fund Fighting To Keep RadioShack Brand Alive
SAN FRANCISCO (KCBS) - The fight continues over the future of RadioShack.
Standard General, which is partnering with Sprint, has upped its bid for the bankrupt chain by $20-million dollars to $165-million, in a bid to keep more than 1,700 stores open, co-branding them between Radio Shack and Sprint, and saving around 7,500 jobs.
Liquidators are elbowing in looking to pick over RadioShack's carcass to sell off the inventory.
One potential snag for Standard General is that RadioShack's creditors are arguing over how the hedge fund will pay for its offer. As the Wall Street Journal pointed out earlier this week, savings jobs isn't the priority of the bankruptcy judge, satisfying creditors is.
The judge overseeing the RadioShack auction is the same one who ordered in favor of liquidators when Tower Records was in bankruptcy in 2006, and the liquidators only offered $500,000 more than a rival that wanted to keep the chain open.