RadioShack Is Going Out Of Business, May Sell Half of Stores To Sprint

Shares of RadioShack Corporation RSH fell over 17 percent Monday amid reports that the company will sell half its stores to Sprint Corp S and close the remainder.

The store locations sold to Sprint would operate under its wireless carrier’s name and the RadioShack brand would no longer exist, according to Bloomberg.

A bankruptcy announcement had been expected since mid-January.

In October 2014, RadioShack restructured a portion of its debt and received capital from Standard General LP. The hedge fund “would serve as the lead bidder in a filing and provide debtor-in-possession financing after filing,” according to the Bloomberg report, allowing it to recover some of its $535 million loan to the company.

RadioShack Corporation recently traded at $0.228, down 17.65 percent.

Sprint Corp traded at $4.25, down 1.16 percent.

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