RadioShack May Shutter, Sprint To Get Half Of Chain
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NORTH TEXAS (CBSDFW.COM) - The NYSE has suspended trading RadioShack stock and was preparing to delist it as rumors of a major sell off for the electronic company loomed.
It's a deal that would mean a thousand RadioShack stores would shut down. And another thousand stores would trade the familiar red R signs for Sprint signs. Bloomberg Business is reporting RadioShack would sell half its stores to the phone carrier and close the rest.
Analysts say Sprint is ready for major expansion and RadioShack has to do something to escape its debt.
"If they don't have something like this that develops what's next?" asked financial analyst Jim LaCamp. "They are continuing to lose money. They haven't successfully transformed themselves. They haven't caught any sort of momentum business-wise."
The rumored deal would either allow radio shack to share the stores with Sprint or do away with RadioShack altogether. We asked RadioShack about the deal and how it would affect its employees. They would not confirm the report or comment on it.
One year ago today, RadioShack launched a major ad campaign during the Super Bowl trying to reshape its image.
Analysts say the campaign failed miserably -- and this may be the beginning of the end for the once mighty retailer.
"If I'm looking at it from a pure, cold hard business standpoint, I don't see how it's going to stay open," LaCamp said. "I don't see how it couldn't not end. They've had all sorts of CEOs, it had all sorts of attempt at transforming, rebranding and nothing has worked.
RadioShack has lost 90 percent of its value in a year and its stock was trading at .22 cents a share Monday night.
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