RadioShack announces bankruptcy plan

Sprint and its biggest shareholder, a hedge fund, have agreed to buy as many as 2,400 of the chain’s stores.

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As rumors of the demise of RadioShack swirled this week, the chain’s executives stayed quiet.

Thursday night, the company announced a long-anticipated bankruptcy plan, putting to rest speculation that the RadioShack brand would be permanently retired.

One big rumor proved true: Sprint and its biggest shareholder, the hedge fund Standard General, are set to acquire between 1,500 and 2,400 of RadioShack’s company-owned stores in the United States. The rest of the 4,000 company-owned stores would be closed. Stores owned by franchisees and foreign affiliates aren’t part of the deal.

Sprint will establish “store-within-a-store” sections in as many as 1,750 of the retail locations Standard General buys. They won’t become full-on Sprint stores, as observers had guessed.

It’s not a totally done deal, however. Sprint and Standard General’s plan would have to get court approval to move ahead, and other entities could outbid the corporate suitor in an open auction.

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