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Why RadioShack Could Sell Half Of Its Stores To Sprint

Why RadioShack Could Sell Half Of Its Stores To Sprint
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Shares of RadioShack Corporation (NYSE: RSH) fell over 17 percent Monday amid reports that the company will sell half its stores to Sprint Corp (NYSE: 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.

Image credit: Coolcaesar, Wikimedia

Posted-In: BloombergNews Rumors Best of Benzinga


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