The operator of electronics store RadioShack, General Wireless Operations, has filed for voluntary bankruptcy protection under Chapter 11 in the US Bankruptcy Court for District of Delaware.
RadioShack stores and dealer locations across the country are still open for business and serving customers, and its RadioShack.com online store will also remain unaffected.
The company is planning to shut about 200 stores and evaluating options on the remaining 1,300 outlets.
All available strategic alternatives are being evaluated by the company and its advisors to increase value for creditors, including the possibility of keeping stores open.
RadioShack president and CEO Dene Rogers said: “For nearly 100 years, RadioShack has proudly served local communities across the US, offering consumers unique, high-quality products at a great value.
“Over the course of the past two years, our talented, dedicated team has worked relentlessly in an effort to revitalise the Company and the RadioShack brand, while providing outstanding service to our customers.”
Rogers continued: “Since emerging from bankruptcy two years ago as a privately owned company, our team has made progress in stabilizing operations and achieving profitability in the retail business, while our partner Sprint managed the mobility business.”
The company's operating expenses were reportedly cut by 23% last year, while gross profit dollars rose 8%.
Rogers further added: “However, for a number of reasons, most notably the surprisingly poor performance of mobility sales, especially over recent months, we have concluded that the Chapter 11 process represents the best path forward for the company.”
The new RadioShack has more than 1,500 company-owned stores, including 1,200 Sprint Stores at RadioShack and 425 independent dealers located nationwide.