In an announcement on March 27, retailer Grupo Gigante agreed to shell out $31.8m for the purpose of purchasing RadioShak de México.

In a plan to revamp and enhance RadioShack’s Mexican business, Gigante will be purchasing 251 outlets (which showed around $115m of sales in 2014), trademarks and brands of the firm via Office Depot de México.

Earlier, Gigante had a joint venture with RadioShack, handling stores in Mexico from 1992 to 2008, before RadioShack Corp. stepped in to take over Gigante’s stake.

In February 2015, filing for bankruptcy protection as per Chapter 11, RadioShack had plans of selling half its US outlets to the hedge fund Standard General before shutting down the other half, a deal that is being vehemently challenged by other creditors.

According to Gigante, a change in business model was required for RadioShack de México, and Gigante was already full of plans to make it grow. In order not to increase its debt, the buy-out will be taken care of by Office Depot de México in cash.

Sale order confirmation from Delaware’s bankruptcy court, which is supervising the RadioShack process, as well as regulatory approval in Mexico is needed for the deal to come through.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Most of RadioShack’s supermarkets were sold in 2008, while it has been focussing on growing its other business. With 50% of Office Depot de México under its control, Gigante had bought the other half from Office Depot for about $690m in 2013. It also bought local retailer Comercial Mexicana’s restaurants as recently as last year.