RadioShack , formally RadioShack Corporation , is a trade name of an American retailer established in 1921, which operates a series of electronics stores. Since 2017, General Wireless Operations, Inc. has leased the name of Kensington Capital Holdings with 28 corporate locations, online websites and 425 independent authorized dealer stores (estimates).
At its peak in 1999, it operated stores in the United States, Mexico, Britain, Australia and Canada. On February 5, 2015, the company filed for Chapter 11 protection under United States bankruptcy law after 11 consecutive quarterly losses. At that time, it only operated in the United States and Mexico. The following month, General Wireless purchased the company's assets, including the "RadioShack" brand, for US $ 160 million.
General Wireless filed for bankruptcy in March 2017, claiming the Sprint partnership was not as profitable as expected, and announced plans to close almost all of their company's stores after Memorial Day Weekend 2017, and shifted its business primarily to online.
Video RadioShack
Histori
40 tahun pertama
The company started as a "Radio Shack" in 1921 by two brothers, Theodore and Milton Deutschmann, who wanted to provide equipment for the amateur field, or a newborn radio ham. The brothers opened a retail store and mail-order operation in the heart of downtown Boston at 46 Brattle Street. They chose the name "Radio Shack", which is a term for small wooden structures that store ship's radio equipment. The Deutschmanns thought the name was appropriate for a store that would supply the needs of radio officers on board, as well as ham (amateur radio operators). This term has been used - and to this day - by ham when referring to their station location.
The company released its first catalog in 1939 when it entered the high-fidelity music market. In 1954, Radio Shack began selling its own private-label product under the brand name Realist, renaming the brand to Realistic after being sued by Stereo Realist. After widening its wings to nine stores plus a vast mail order business, the company fell in tough times in the 1960s. Radio Shack is basically bankrupt, but Charles D. Tandy sees the potential of Radio Shack and retail consumer electronics and buys the company for US $ 300,000.
Tandy Corporation
The Tandy Corporation, a leather goods company, is looking for businesses that are linked to other expandable hobbies. At the time of Tandy Radio Shack & amp; Skin 1962 acquisition, the Radio Shack chain is almost bankrupt; he sold AM and FM radio worth US $ 14 million, ham radio devices, walkie-talkies, speakers and antennas every year, but spent more money than he used.
Tandy shut down the unfavorable Mail Shack mail-order business, ending credit purchases and eliminating many top management positions, keeping sellers, merchants and advertisers alike. The carrying amount was cut from 40,000 to 2,500, as Tandy sought to "identify 20% representing 80% of sales" and replace a small number of Radioack stores in major stores with many "small holes in the wall", a large number of rented locations more easily closed and reopened elsewhere if one location does not work. Private-labels brands from lower-cost manufacturers replace brand names to increase Radio Shack's profit margins; non-electronic lines from go-cart to musical instruments are completely abandoned.
The customer data of the RadioShack order mail order business is determined where Tandy will find a new store. As an incentive for them to work long hours and stay profitable, store managers are required to take ownership of shares in their stores. In a market too small to support a company's Radio Shack store, the chain relies on independent dealers who take the product as a side business.
Charles D. Tandy, who guided this firm through a period of growth in the 1960s and 1970s, died of a heart attack at age 60 in November 1978.
In 1982, the Bell System breakup prompted customers to have their own phone rather than hire them from a local telephone company; Radio Shack offers twenty home phone models.
Most Radio Shack lines are manufactured in factories owned by the company itself. In 1990/1991, Tandy was the world's largest personal computer manufacturer; OEM manufacturing capacity is building hardware for Digital Equipment Corporation, GRiD, Olivetti, AST Computer, Panasonic, and others. The company produces everything from store fixtures to computer software to cables and cables, TV antennas, audio and video tapes. At one point, Radio Shack is the largest electronics chain in the world.
In June 1991, Tandy closed or restructured its 200 Radio Shack Computer Centers, acquired Computer City, and sought to shift its emphasis from components and cables to mainstream consumer electronics. Tandy sold his computer manufacturer to AST Research in 1993, including a Grid Systems Corporation laptop computer that had been purchased in 1988. He sold the Memorex consumer recording brand to a Hong Kong company, and relinquished most of its manufacturing division. Branded products, which Radio Shack has long been tagged, are replaced by third-party brands already available from competitors. This reduces the profit margin.
In 1992, Tandy tried to launch the big-box Incredible Universe electronic retailer; most of the seventeen stores never make a profit. His six profitable stores were sold to Fry's Electronics in 1996; the other is closed. Other rebranding efforts include launch or chain acquisitions including McDuff, Video Concepts and Edge in Electronics; these are big stores that carry TVs, equipment and other lines.
Tandy closed McDuff stores and left the Great Universe in 1996, but continued to add new RadioShack stores. In 1996, industrial component suppliers deployed e-commerce to sell various components online; it will be another decade before RadioShack will sell parts of its website, with a very limited choice so there is no rival for industry vendors who are established with special and centered million-item inventory.
In 1994, the company introduced a service known as "Repair Shop at Radio Shack", where it provided an out-of-cheap repair warranty for more than 45 different brands of electronic equipment. The Company already has over one million parts in its vast component warehouse and 128 service centers across the US and Canada; he hopes to capitalize on this to build customer relationships and increase store traffic. Len Roberts, president of the Radio Shack division since 1993, estimates that the new repair business could generate $ 500 million annually in 1999.
"American technology store" was left behind by the slogan "You have a question, we got the answer" in 1994. In the early summer of 1995, the company changed its logo; "Radio Shack" is spelled on CamelCase as "RadioShack". In 1996, RadioShack successfully petitioned the US Federal Communications Commission for allocating frequencies for Family Radio Services, a proven popular short-range walkie-talkie system.
Battery This Month
From the 1960s to the early 1990s, Radio Shack promoted the club's "batteries this month"; a free wallet cardboard card offers a free one-month free Enercell inside the store. As well as free tube testing offered in stores in the early 1970s, these small loss leaders attracted pedestrian traffic. They also serve as common business cards for sellers.
Allied Radio
In 1970, Tandy Corporation purchased Allied Radio Corporation (retail and industrial divisions), merged the brand into Allied Radio Shack and closed the duplicate location. After a review of the federal government in 1973, the company sold some of the remaining Allied retail stores and re-named Radio Shack. Allied Electronics, the company's industrial component operation, continued as a Tandy division until it was sold to Spartan Manufacturing in 1981.
Expansion
In the 1970s, the chain extended to England under the name Tandy; Tandy entered the Australian market in 1973. International expansion operated through subsidiaries (separated as InterTAN in June 1986) which operated Tandy stores or Radio Shack until 1999 (England), 2001 (Australia) and 2004 (Canada).
Flavoradio
The longest running product for Radio Shack is AM-only Realistic Flavoradio, sold from 1972 to 1986, 15 years in the same design. This also made Flavoradio the longest production in radio history. Originally released in 6 colors or flavors, strawberries, oranges, lemons, avocados, blueberries and grapes, the line grew into eleven flavors. They are made in Korea, Hong Kong and Philippines. Flavoradio brought the Realistic name until about 1998 when it switched to "Radio Shack" and finally "Optimus". When Flavoradio was removed from the catalog in 2001, it was the last AM-only radio on the market.
CB radio
This chain benefited from the mass popularity of citizen radio bands in the mid-1970s which, at its peak, represented nearly 30% of network revenues.
Personal computer
In 1977, two years after the MITS Altair 8800, Radio Shack introduced the TRS-80, one of the first mass-produced private computers. It is a complete pre-assembled system at a time when many microcomputers are built from kits, which are supported by national retail networks when computer stores are still in the early stages. Initial sales, primitive US $ 600 TRS-80 exceeded all expectations despite its limited ability. This was followed by the TRS-80 Color Computer in 1980, designed to be plugged into television. Tandy also inspired Tandy Computer Whiz Kids (1982-1991), a comic duo of teenage fans who work with people like Archie and Superman. Radio Shack computer stores offered lessons to pre-teen teenagers as "Radio Shack Computer Camp" in the early 1980s.
In the mid-1980s, Radio Shack started the transition from its 8-bit computer to its exclusive IBM Tandy computer, removing the name "Radio Shack" from the product in an effort to release the long nickname "Radio Scrap" and "Trash 80" to make the product attractive for business users. Poor compatibility, shrinking margins and lack of economies of scale have caused Radio Shack to break out of the computer manufacturing market in the 1990s after losing many desktop PC markets to newer, competitive-price competitors like Dell. Tandy acquired the Computer City chain in 1991, and sold his store to CompUSA in 1998.
In 1994, RadioShack began selling the IBM Aptiva home computer lineup. The partnership will last until 1998, when RadioShack partnered with Compaq and created the 'Creative Learning Center' as an in-store shop to promote desktop PCs. Similar promotions are tried with 'Sprint Shop on RadioShack' (cell phone) and 'PowerZone' (RadioShack battery product line).
RadioShack Corporation
In the mid-1990s, the company sought to break out of small components and enter a more mainstream consumer market, focusing on wireless phone marketing. This puts the long, accustomed chain of filling the wide margins on specialty products that are not available from other local retailers, into direct competition against vendors like Best Buy and Walmart.
In May 2000, the company dropped Tandy's name altogether, becoming RadioShack Corporation. Leather's operating asset was sold to The Leather Factory on 30 November 2000; the business remains profitable.
Realistic and Optimus home brands are stopped. In 1999, the company agreed to bring the RCA product into a five-year agreement for the "RCA Digital Entertainment Center" store inside the store. When the RCA contract expires, RadioShack introduces its own Presidian and Accurian brands, reviving the Optimus brand in 2005 for some low-end products. Enercell, the home brand for dry cell batteries, remains in use until about 2014.
Most of RadioShack's home brands had been dropped when Tandy released his manufacturing facility in the early 1990s; original list including: Realistic (stereo, hi-fi and radio), Archers (antenna rotor and amplifier), Micronta (test equipment), Tandy (computer), TRS-80 (proprietary computer), ScienceFair (kit), DuoFone (landline telephony), Concertmate (music synthesizer), Enercell (cell and battery), Road Patrol (radar detector, ), Patrolman (The realistic radio scanner), Deskmate (software), KitchenMate , Stereo Shack , < i> Mach One >, Supertape , Optimus (speakers and turntables), Flavoradio (pocket AM radio inside various colors), Weatheradio , Portavision (small television) and Minimus (speakers).
In 2000, RadioShack was one of several CueCat code reader supporters, a marketing failure. The company has invested US $ 35 million in the company, including barcodes in its catalog and distributes CueCat devices to customers at no cost.
The last annual RadioShack print catalog was distributed to the public in 2003.
Until 2004, RadioShack regularly requested buyers' names and addresses so they could be added to mailing lists. Mail name and address requested for special orders (parts and accessories of RadioShack Unlimited, Direc2U items not locally stocked), returns, check payments, credit card applications Answers PlusShack Plus, the purchase of service packs and activation of mobile phone operators.
On December 20, 2005, RadioShack announced the sale of a new building in Fort Worth, a roadside Texas headquarters for KanAm Grund based in Germany; the property was leased back to RadioShack for 20 years. In 2008, RadioShack commissioned this lease to the Tarrant County College District (TCC), remaining in an area of ​​400,000 square feet as its headquarters.
In 2005, RadioShack split with Verizon for a 10-year agreement with Cingular (later AT & T) and renegotiated an 11-year agreement with Sprint. In July 2011, RadioShack ended its wireless partnership with T-Mobile, replacing it with "Verizon Wireless Store" inside the store. 2005 marks the year of banners for wireless. Under Jim Hamilton's EVP Marketing and Merchandising, RadioShack sells wireless handsets over three of its biggest competitors (Best Buy, Circuit City and Walmart) combined and celebrate one of the most rewarding years ever.
RadioShack has not created a product with a Realistic name since the early 1990s. Support for many of Radio Shack's traditional product lines, including amateur radio, ended in 2006. A number of small-town franchise dealers use their ability to bring non-RadioShack merchandise to bring in parts from outside sources, but these represent minorities.
PointMobl and "The Shack"
In mid-December 2008, RadioShack opened three concept stores under the name "PointMobl" to sell phones and wireless services, netbooks, iPods and GPS navigation devices. The three Texas stores (Dallas, Highland Village and Allen) are equipped with white fixtures like those in the repaired wireless department of Individual RadioShack stores, but no relationship is communicated with RadioShack itself. If testing proves successful, RadioShack can move to convert existing RadioShack locations to PointMobl stores in selected markets.
While some PointMobl products, such as car power adapters and phone cases, are (and still are) brought as a store-brand product at RadioShack stores, the stand-alone PointMobl store is closed and the concept is abandoned in March 2011.
In August 2009, RadioShack changed its name to "The Shack". This campaign boosts cellular product sales, but at the expense of its core component business.
RadioShack aggressively promotes Dish Network subscriptions.
In November 2012, RadioShack introduced the Amazon Locker parcel pickup service at its stores, only to dispose of the program in September 2013. In 2013, the chain makes tokens try to regain the market itself, including the new "Do It Together" slogan.
Longtime staff observe the slow and gradual changes of electronic components and customer service and to the promotion of wireless sales and add-ons; pressure to sell increased gradually, while the focus on training and product knowledge declined. Exhausting spirit; old employees who are paid bonuses and retired in stock options see the value of this instrument fade away.
Financial downgrade
In 1998, RadioShack called itself the biggest seller of consumer telecommunication products in the world; its stock peaked a year later.
InterTAN, a former subsidiary of Tandy, sold Tandy UK outlets in 1999 and Australian stores in 2001. InterTAN was sold (with Canadian shops) to compete with Circuit City in 2004. RadioShack brands remain in use in the United States, 21 proves long periods of decline for chains, which are slow to respond to major trends - from e-commerce and the inclusion of competitors such as Best Buy and Amazon.com to the revival of the makers movement.
In 2011, smartphone sales, not general electronics, accounted for half of the revenue chain. The traditional Radio Shack clients from self-tinkerers are increasingly ruled out. Electronic parts previously stocked in stores are now mostly only available through special on-line orders. Save employees who concentrate on selling profitable cellular contracts, while other customers seeking help are ignored and leave the store in frustration.
Demand for consumer electronics is also increasingly attenuated by consumers who buy goods online.
2004: "Fix the 1500" initiative
In early 2004, RadioShack introduced Fix 1500 , a sweeping program to "fix" inventory and profitability issues across the company. The program locates 1,500 store managers with the lowest rank, more than 5,000, with notice of the need to improve. Managers are judged not on real storage and personnel data but in one-on-one interviews with district management.
Typically, a 90-day period is assigned for the manager to increase (thus causing another manager to be selected for Fix it 1500 ). A total of 1734 store managers were moved as sales associates or terminated in a 6-month period. Also, during this period, RadioShack canceled the purchase plan of employees' shares. In the first quarter of 2005, the skills assessment metrics used during Fix it 1500 have been discarded, and the company officer who created the program has resigned.
In 2004, RadioShack became the target of a class action lawsuit in which more than 3,300 RadioShack managers currently or previously accused the company of requiring them to work for hours without paying overtime. In an effort to press the news, the company launched a successful strategic lawsuit against public participation against Bradley D. Jones, RadioShackSucks.com webmaster and former RadioShack dealer for 17 years.
2006: Management issues
In 2005, switching in full-featured wireless service providers caused a 62 percent drop in fourth-quarter revenue due to inventory recording, which sent the company's shares to nearly three-year lows.
On February 20, 2006, CEO David Edmondson acknowledged "misstatement" on the resume and resigned after Fort Worth Star-Telegram uncovered his claim for a degree in theology and psychology from Heartland Baptist Bible College.
Chief operating officer Claire Babrowski briefly took over the position of CEO and president. A 31-year-old veteran of McDonald's Corporation, where he served as vice president and Chief Restaurant Operations Officer, Babrowski had joined RadioShack a few months earlier. He left the company in August 2006, then became CEO and Executive Vice President of Toys "R" Us.
The board of directors of RadioShack appointed Julian C. Day as chairman and chief executive officer on July 7, 2006. The day has financial experience and has played a key role in revitalizing companies like Safeway, Sears and Kmart but lacking any practical front-line sales experience. needed to run a retail company. The Consumerist named it one of "10 Crappiest CEOs" in 2009 (among companies facing customers, according to their own employees). He resigned in May 2011.
JamesShack's Chief Financial Officer James "Jim" Gooch replaced Hari as CEO in 2011, but "agreed to resign" 16 months later following a 73% drop in stock prices. On February 11, 2013, RadioShack Corp. hired Joseph C. Magnacca of Walgreens, as he has experience in the retail field.
2006: Enterprise stop and new strategy
In spring 2006, RadioShack announced a strategy to increase average unit volumes, lower overhead costs, and grow profitable square footage. In the early to mid 2006, RadioShack shut down nearly 500 locations. It is determined that some stores are too close to each other, causing them to compete with each other for the same customers. Most stores that closed in 2006 earned less than US $ 350,000 in revenues each year.
Despite this action, stock prices fall in what is stated as a booming market. On August 10, 2006, RadioShack announced plans to eliminate one-fifth of its corporate headquarters workforce to reduce overhead costs, improve long-term competitive position while significantly supporting a small number of stores. On Tuesday, August 29, the affected workers received an email: "Notice of reduction in the workforce is currently underway, but your position is one that has been eliminated." Four hundred three workers were given 30 minutes to collect their personal influence, bid farewell to co-workers and then attend a meeting with their senior supervisor. Instead of immediately issuing severance pay, the company held back to ensure that BlackBerrys, laptops, and phones issued by the company were returned. This move immediately attracted widespread public criticism for lack of sensitivity.
2009: Customer relationship issues
RadioShack and the Better Business Bureau of Fort Worth, Texas met on April 23, 2009 to discuss unanswered and unresolved complaints. The company implemented an action plan to address existing and future customer service issues. The shops were directed to put up a sign with the name of the district manager, the question "How Do We Do It?" and toll-free numbers directly to their respective district offices for their area. RadioShackHelp.com is created as another portal for customers to solve their problems over the Internet. In 2012, BBB has updated RadioShack from "F" to "A"; this was changed to "no ranking" after filing for bankruptcy 2015.
According to an experience rating report published by Temkin Group, an independent research firm, RadioShack is ranked as the retailer with the worst overall customer experience; it maintained this position for six consecutive years.
2012-2014: Financial distress
From 2000 to 2011, RadioShack spent US $ 2.6 billion to repurchase its own shares in an effort to shore up shares that fell from US $ 24.33 to US $ 2.53; buyback and stock dividend discontinued in 2012 to save money and reduce debt as the company continues to lose money.
The same store sales for the first quarter of 2012 fell 4.2 percent from a year earlier, with consumer electronics sales down 24.1 percent. Shares have dropped 81 percent since 2010 and are trading well below book value. In April 2012, after a very bad first quarter, Moody reduced his ratings on RadioShack to "junk" status. Stockpiles hit an all-time low on April 14, 2012, only to sink further on July 11, 2013 in upcoming bankruptcy rumors.
In September 2012, RadioShack headquarters laid off 130 additional workers after a quarterly loss of US $ 21 million. The layoffs continue in August 2013; headquarters jobs fell from more than 2,000 before the 2006 layoffs to slightly less than 1,000 by the end of 2013. By the end of 2013, the network has 4,297 stores in the US. An additional 900 stores remain in the hands of independent traders; in their heyday, Radio Shack franchise shops became 2500 small local retailers in the city where they represent more than 10 percent of network revenues.
The Company has received a cash infusion of US $ 250,000,000 in 2013 from Salus Capital Partners and Cerberus Capital Management. This debt brings burdensome conditions, preventing RadioShack gaining control over costs by limiting store closures to 200 per year and limiting the company's refinancing efforts. With too many poorly performing stores still open, the chain continues to move toward bankruptcy.
A Super Bowl advertisement February 2, 2014 with the tagline "The 80s called, they want their store back", depicting the 1980s idol Kid 'n Play, Mary Lou Retton, California Raisins, Erik Estrada and ALF loading all RadioShack stores dated boomboxes, faxes, and VCR inventory onto DeLorean DMC-12 1981 rooftop and driving.
On March 4, 2014, the company announced a net trade loss for 2013 of US $ 400.2 million, well above the 2012 loss of US $ 139.4 million, and proposed a restructuring that would close 1,100 low-performing stores, nearly 20% of the premises in the US.
On May 9, 2014, the company reported that its creditors had prevented it from closing, although many markets were so saturated with stores that effectively competed with the chain itself. All secured lenders need to approve the plan and Salus (a division of the Harbinger Group) refuses, assuming fewer shops mean fewer assets to secure the loan, reducing any recovery that will occur in bankruptcy reorganization.
Six days later, ratings agency Fitch downgraded the rating of RadioShack to "CC", two notch away from default, saying Fitch "is increasingly concerned about RadioShack's ability to operate after 2014," and warned of restructuring before the end of the year or early 2015. "
As of June 10, 2014, RadioShack says that they have enough money for the last 12 months, but that lasts a year depends on sales growth. Sales have fallen for nine consecutive quarters, and by the end of the year, the company has realized losses in "each of the past 10 quarters". Six days later, Standard & amp; Poor's downgraded RadioShack's credit rating to "CCC", warning that the company will have "a very small amount of liquidity early next year, which could lead to liquidity and default crises or corporate decisions to seek financial restructuring."
On June 20, 2014, the stock price of RadioShack fell below US $ 1, prompting a July 25th annulment of the canceled New York Stock Exchange for failure to keep stock prices above $ 1.
On July 28, 2014, this Mergermarket Debtwire reported RadioShack discusses Chapter 11 bankruptcy protection as an option. The next day, Moody's Investors Service said that under the "best case scenario," RadioShack will run out of liquidity by October 2015, and, in the worst-case scenario, the company will not have enough money to survive through the 2014 holidays.
On September 11, 2014, RadioShack acknowledges that they may have to file for bankruptcy, and will not be able to finance its operations "beyond the immediate term" unless the company is sold, restructured, or receiving a large cash infusion. Standard and Poor's said, "We believe the company will default or restructure in some form equal to the default within the next six months." The next day, Fitch downgraded the company's rank to "C", the last rank before the default, concluding that a "downgrade to 'C' would signal that Fitch believes the default on RadioShack is imminent."
On September 15, 2014, RadioShack replaced the CFO with a bankruptcy specialist. On October 3, RadioShack announced a restructuring out of court, 4: 1 stock dilution, and the right to issue a price of 40 cents per share. Shares of RadioShack (NYSE: RSH) are suspended on the New York Stock Exchange throughout the day. Despite the debt restructuring proposal, in December Salus and Cerberus informed RadioShack that it was the default of the US $ 250 million they provided as a cash infusion in 2013.
At the end of October 2014, the quarterly figure showed RadioShack lost US $ 1.1 million per day. Attempts in November 2014 to keep shops open from 8 am to midnight on Thanksgiving drew sharp reactions from employees and some resignations; comparable store sales for three days (Thursday-Saturday) is 1% lower than a year earlier, when the store opened for two days. The problem of companies that maintain large inventory of items, such as the Apple iPhone 6, further cuts sales.
In December 2014, RadioShack was sued by former employees for having encouraged them to invest 401 (k) of retirement savings in company stocks, accusing fiduciary duty violations for "caution" over the pension fund that caused "devastating losses" in retirement plans the stock fell from US $ 13 in 2011 to 38 cents by the end of 2014. This claim was rejected by the Fifth US Circuit Court of Appeal in 2018.
RadioShack seeks to renegotiate a larger bribe on mobile phone activation from mobile operators, but can not reach an agreement with any carrier.
2015: Bankruptcy
On January 15, 2015, The Wall Street Journal reported RadioShack has delayed lease payments to several commercial landlords and is preparing for a bankruptcy filing that could come as early as February. Company officials declined to comment on the report. A separate report by Bloomberg claims the company may sell the lease to as many as half of its stores to Sprint.
On February 2, 2015, the company was excluded from the New York Stock Exchange after the average market capitalization remained below US $ 50 million for more than thirty consecutive days. On the same day, Bloomberg News reported RadioShack is in talks to sell half of its stores to Sprint and close the rest, which would effectively make RadioShack no longer a stand-alone retailer. Amazon.com and Brookstone are also touted as potential bidders, who initially had a desire to establish the existence of bricks and mortars. On February 3, RadioShack failed to pay its loan from Salus Capital.
In the days following these reports, some employees were instructed to reduce prices and remove inventories from stores intended to close them that would remain open during future bankruptcy proceedings, while the remainder remain "in the dark" about the company's future.. Many stores have closed unexpectedly on Sunday, February 1, 2015, the first day of the company's fiscal year, with employees only notified a few hours in advance. Some have opened with a skeleton crew, little inventory and reduced hours just because Salus Capital's loan requirements limit the chain to 200 store closures a year. A creditor group alleges that the chain is still supporting life rather than shutting down earlier and cutting its losses just so the Standard General can avoid paying credit default swaps ending on December 20, 2014.
On February 5, 2015, RadioShack announced that it had filed for Chapter 11 bankruptcy protection. Using bankruptcy to end contractual restrictions requiring it to open unprofitable stores, the company immediately issued a list of 1784 stores it wanted to shut down, a process to be completed by the end of the month for avoiding estimates of US $ 7 million in March leases.
Customers are originally issued until March 6, 2015 to return merchandise or redeem unused gift cards. However, after legal pressure from the state's attorney general, RadioShack has finally agreed to replace customers with unused gift card values.
On March 31, 2015, a bankruptcy court approved a US $ 160 million bid by General General Association General Wireless, which acquired 1,743 RadioShack holdings. As part of the deal, the company entered into a partnership with Sprint, where the company will become a joint renter at 1,435 RadioShack locations and set up shop inside a store area intended to sell wireless brands, including Sprint, Boost Mobile and Virgin Mobile. The stores will collect commissions for the sale of Sprint products, and Sprint will assist in promotions. Sprint stated that this arrangement would increase the company's retail footprint by more than doubling; the company previously had about 1,100 retail outlets owned by the company, compared to the more than 2,000 run by AT & amp; T Mobility. Although they will be treated as co-tenants, the Sprint branding will be more prominent in promotional and exterior signage than RadioShack. The acquisition does not include RadioShack intellectual property rights (such as its trademarks), rights to RadioShack franchise locations, and customer records, which must be sold separately.
RadioShack criticized for entering the personal identification information of customers as part of the assets to be sold during the process, although long-term policy and promise to the customer that the data will never be sold for any reason at any time. The Federal Trade Commission and the Attorney General of several countries are at war with this movement. The sale of this data is approved, though greatly reduced from what was originally proposed.
General Wireless Operations, Inc
Standard General acquired the RadioShack brand after RadioShack Corporation filed for bankruptcy in 2015. It established an affiliate, General Wireless Operations, to act as the new holding company for the brand. The new RadioShack focuses on its partnership with Sprint in the hope of bringing the brand.
The re-branded stores launched on April 10, 2015, with initial conversion from the existing wireless department in the store to exclusively the Sprint brand, with all stores eventually being renovated in waves to allocate more space for Sprint. In May 2015, the acquisition of the name "RadioShack" and its assets by General Wireless for US $ 26.2 million was completed. Chief marketing officer Michael Tatelman stressed that the company that emerged from the 2015 process was a completely new company, and then confirmed that the old RadioShack did not reappear from bankruptcy, calling it "dead".
Less than a year after the events of bankruptcy in 2015, Ron Garriques and Marty Amschler resigned from their respective chief executive officers and chief financial officers; Garriques has maintained his position for nine months.
2017: Bankruptcy
It was speculated on March 2, 2017 that General Wireless is preparing to take RadioShack through its second bankruptcy in two years. This is evidenced when dozens of employees of the corporate office are laid off and two hundred stores are planned to close, and further proven when the RadioShack site begins displaying "all final sales" banners for in-store purchases at all locations.
Chapter 11 RadioShack bankruptcy was officially filed on March 8, 2017. Of the remaining 1,300 stores, several hundred were converted to Sprint premises only.
Despite declaring Chapter 11 bankruptcy (usually reserved for debt reorganization) rather than chapter 7, the company is involved in the liquidation of all inventory, inventory, and store supplies, as well as auctioning old memorabilia. On May 26, RadioShack announced plans to close all but 70 corporate stores and divert its business primarily to online. These shops are closed after the Heroes Day weekend 2017. From the rest of the store, the other 50 are closed by the end of June 2017.
One closing of a specialty store in April 2017 garnered widespread media attention when a Facebook account, calling itself "RadioShack - Reynoldsburg, OH", began to condemn customers with messages like "We're hiding it with you guys.", "Always hate all your poking customers anyway. "RadioShack addressed this post on their official Facebook page denying any involvement.
On June 29, 2017, RadioShack creditors sued Sprint, claiming that they were sabotaging their co-branded locations with a newly built Sprint retail store - built near the well-performing RadioShack location as determined by secret sales information. The lawsuit stated that Sprint's actions "destroyed nearly 6,000 RadioShack jobs".
General Wireless announced plans on June 12, 2017 to auction the name of RadioShack and IP, with an offer starting on July 18. The offer expires on July 19, 2017, when one of RadioShack's creditors, Kensington Capital Holdings, acquired the RadioShack brand and other intellectual property of US $ 15 million. Kensington is the sole bidder.
In October 2017, General Wireless officially quit bankruptcy and allowed to retain corporate warehouses, e-commerce sites, dealer network operations, and up to 28 stores.
Starting January 2018, Store Finders on the Radio Shack website only listed "authorized Radio Shack dealers" with other business names, from Maryland to Maine, and all corporate stores have closed.
Maps RadioShack
Corporate headquarters
In 2001, RadioShack bought the former public housing complex Ripley Arnold in Downtown Fort Worth for US $ 20 million. The company is leveling the complex and has a 900,000 square foot (84,000 m 2 ) corporate campus built after Fort Worth City approved a 30-year economic agreement to ensure that the company remains in Fort Worth.. The company sold the campus to Tarrant County College and, in 2009, had the remaining two-year lease-free rental in the building. The company intends to make US $ 66.8 million in agreement with the city. In 2009, it generated US $ 4 million, and Fort Worth Star-Telegram reported that the company was considering a new site for its headquarters. The Tampa Bay Business Journal reported rumors among brokers and Tampa Bay Area real estate developers that RadioShack might choose Tampa as the location of its headquarters. In 2010, however, RadioShack announced its efforts to stay on its site today. The headquarters finally closed in 2017 after the second bankruptcy filing.
International operations
Radio Shack originally did business in Australia, Belgium, Canada, France, West Germany, the Netherlands, United Arab Emirates and Britain through its subsidiary InterTAN (shortened version of "International Tandy"), separated as a separate company in June 1986 By the end of 1989, there were 1,417 stores operated by InterTAN under the name Tandy or Radio Shack. In 2005, all have been sold, closed or branded, sever all ties with Radio Shack.
RadioShack de MÃÆ' Â © xico and its 274 stores are owned by US RadioShack Corporation and are not part of a group of stores divested through InterTAN. As of early 2012, an additional 240 stores are operated by overseas franchisees. It has evolved into thousands of overseas franchise stores at the time of filing bankruptcy chains. Despite the disadvantages at home, the chain has established a franchise presence by 2012 in Malaysia and a joint venture (49%) in mainland China.
Australia
InterTAN Australia ran a Tandy Electronics store until 2001 with Woolworths Limited buying the store for A $ 112.6 million. Woolworths found Tandy Electronics to be in a bad shape and trying to rejuvenate the business. In February 2009, Woolworths Limited announced that it will close all Tandy stores within the next 2 years. At the end of June 2012, all stores are closed. After Woolworths bought Tandy Electronics, despite having rival Dick Smith Electronics, the two continued to trade as separate entities.
Canada
InterTAN operates the RadioShack network from Barrie, Ontario which brings most (but not all) of the US Radio Shack product lines. Since British and Australian stores were sold in 1999 and 2002 (respectively), this was the last Radio Shack location operated by InterTAN when Circuit City bought InterTAN and 950 Canadian stores (RadioShack, Battery Plus and some Rogers kiosks) for CAN $ 284 million in 2004. RadioShack branded merchandise accounted for 9.5% of InterTAN inventory purchases in fiscal year 2002-2003, the last complete year prior to the acquisition of Circuit City, and will soon disappear from the shop entirely.
RadioShack sued InterTAN one week after the purchase, claiming InterTAN had violated their terms of agreement by failing to make an annual payment of CAN $ 55,000 in January 2004. On March 24, 2005, a US district court judge ruled in favor of RadioShack, which required InterTAN to stop using the brand name in products, packaging or advertising on June 30, 2005. Canadian shops were renamed by The Source by Circuit City.
RadioShack then announced its intention to re-enter the Canadian market itself. InterTAN takes court action to prevent RadioShack from using a trademark in Canada until the expiry date of 2010 which was previously from the original license agreement.
From the initial plan for 20 to 30 RadioShack stores to open in Canada, only nine company-owned stores and 16 dealer stores operated in late 2005. RadioShack Corporation closed all nine Canadian stores in January 2007 to refocus attention and resources on strengthening core business US.
Sources remain profitable despite the 2009 US Circuit Company bankruptcy in 2009; its stores were sold to Bell Canada Enterprises as survival.
Mexico
In 1986, Grupo Gigante entered into an agreement with Tandy Corporation to operate Radio Shack branded stores in Mexico. After growing their electronics chain in Mexico up to 24 stores, Grupo Gigante signed a new contract with Tandy in 1992 to form a new joint venture called RadioShack de MÃÆ' Â © xico where Grupo Gigante and Tandy share the same shares in the new company. As part of the deal, Grupo Gigante moves their electronics store to a new company.
In 2008, Grupo Gigante decided to split up with the renamed RadioShack Company and sell its share of the joint venture to RadioShack Corp for $ 42.3 million. At the time of sale, RadioShack de Mexico has 150 stores.
As of February 2016, RadioShack de Mexico has 176 stores under RadioShack. Company operations in Asia and Mexico are not part of US bankruptcy February 5, 2015.
In June 2015, Grupo Gigante can purchase 100% of RadioShack de Mexico, along with stores, warehouses, and all related brand names and intellectual property for use in Mexico, from the US Bankruptcy Court in Delaware of US $ 31.5 million. At the time of purchase, Radio Shack de MÃÆ'Ã… © xico has 247 stores in operation.
While RadioShack faces a second bankruptcy in the United States, Grupo Gigante announced in October 2017 that it plans to expand its RadioShack brand in Mexico by opening eight more stores.
More operations
Corporate citizenship
RadioShack supports the National Center for Missing & amp; Children are exploited by providing store presence for the StreetSentz program, identification of children and educational tools offered to families at no cost. RadioShack supports United Way of America Charities to help with their Oklahoma and Texas relief efforts after the Moore 2013 tornado. The RadioShack green initiative promotes the Recycled Battery Recycling Company, which receives rechargeable batteries at end-of-life and in-store wireless phones to be recycled safely.
Other reseller partnerships
In August 2001, RadioShack opened a kiosk-style shop inside Blockbuster outlets, only to leave the project in February 2002; CEO Len Roberts announced that the stores did not meet expectations.
RadioShack operates wireless kiosks in 417 Sam's Club discount stores from 2004 through 2011. The kiosk operations, purchased from Arizona-based Wireless Retail Inc., operate as a subsidiary, SC Kiosks Inc., with employees contracted through RadioShack Corporation. No branded RadioShack merchandise is sold. The kiosks closed in 2011, RadioShack costs an estimated US $ 10-15 million in 2011 operating income.
RadioShack then attempted a joint venture with Target to deploy mobile phone kiosks at 1,490 Target stores in April 2011. In April 2013, RadioShack's partnership with Target ended and the Target store inside stores moved to a new partnership with Brightstar and MarketSource.
without a contract
On September 5, 2012, RadioShack in partnership with Cricket Wireless, began offering wireless services without own branded contracts using the national network of Cricket and Sprint. This service was discontinued on August 7, 2014; clients who have purchased services from RadioShack continue to receive services from Cricket Wireless.
Sponsors cycling team
In 2009, the company became the main sponsor of the new cycling team, RadioShack Team, with Lance Armstrong and Johan Bruyneel. RadioShack displays Armstrong in a number of television commercials and advertising campaigns. RadioShack was criticized for having Armstrong as a spokesperson in 2011, when allegations emerged from cyclists using performance-enhancing drugs.
Legal and litigation charges
AutoZone, a company that has been forced to change its name from "Auto Shack" due to a 1982 trademark infringement lawsuit by Radio Shack, claims there is "a possibility of confusion" between PowerZone and AutoZone in a lawsuit against Tandy Corporation; the lawsuit did not work.
In June 2011, Marcia Jones and her 13-year-old daughter, Morgan, sued Sprint and RadioShack after the teenager discovered a newly presumed Sprint HTC Evo 4G phone, a pair purchased at Stonecrest Mall in Lithonia, Georgia containing adult pornography and child uploads. by the previous user.
In 2012 at EEOC v. RadioShack, Civil Action # 10-cv-02365 , US District Court for the District of Colorado, Denver jury awarded US $ 674,938 to David Nelson, 55 years (as of 2007), a 25-year-old RadioShack employee who was dismissed in retaliation after complained about age discrimination by his superiors. In 2013, the federal jury awarded more than US $ 1 million to 54-year-old RadioShack store manager Frank Allen, who was fired in 2010 from 938 Market St, a San Francisco store he managed since 1998, was replaced by a 23-year wants someone with "younger ideas."
A 2013 class action assessment at Redman et al. vs. RadioShack Corporation found that RadioShack violated the privacy requirements imposed by the Fair and Accurate Credit Transactions Act, 15 U.S.C. Ã,§ 1681 between 24 August 2010 and 21 November 2011 by printing the expiration date of credit card or debit of the client at the store receipt.
The July 2014 decision at Verderame v. RadioShack Corp., 13-02539 in US District Court, Eastern District of Pennsylvania (Philadelphia) found RadioShack owed to its store manager a possible US $ 5.8 million due to unpaid overtime in the country; Similar claims have been made in other US states.
In popular culture
The "Radio Shock" store (owned by "Tandy Corporation") appeared in the 1991 original release of Space Quest IV, replaced by "Hz So Good" in subsequent editions for the threat of legal action. by Tandy.
Radio Shack stands out at Short Circuit 2 , which serves as a "clinic" for Johnny 5 as he fixes himself after being attacked by a thief.
Radio Shack is mentioned and displayed briefly on the premiere episode of Young Sheldon . A visit to RadioShack is a frequent plot point in the series Young Sheldon , building a reference to a childhood visit made by Sheldon Cooper's character in its parent series, The Big Bang Theory .
Bob's character from season 2 of Stranger Things works on RadioShack.
References
Further reading
- Irvin, Farman (1992). Tandy Money Machine: How Charles Tandy Builds Radio Shack to the World's Largest Chain of Electronic . Chicago: Mobium Press. ISBN: 0-916371-12-3. Ã,
- Hayden, Andrew, "Radio Shack: A Simple Beginning for the Electronic Giant", antiqueradio.com , February 2007
External links
- Official website
- Radio Shack Record at Fort Worth Library Archives
- Radioshackcatalogs.com, archived 80 years of RadioShack catalog
Source of the article : Wikipedia
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