Today, electronics retail giant RadioShack filed for Chapter 11 bankruptcy.
RadioShack will close its doors for good in the next few months.?The 94-year-old company was once the go-to place for all your household and handheld electronic needs. The business failed to convert when the 21st century knocked at the door thus leaving its profits to dive into the red.
This led Alliance Bernstein director, Gershon Distenfield, in an interview with CBS News to say:
“RadioShack died years ago; we’re only now holding the funeral.”
Gershon could not have been more accurate with his statement, as the retail giant saw dipping profits for many years.
One?of the reasons RadioShack failed was because it failed to integrate smartphones and platform game consoles into their retail stores. Instead, they relied on coaxial cables and outdated technology to keep the business alive. RadioShack also failed to capitalize on the e-commerce boom of the 2000s. As companies like BestBuy soared with record profits, RadioShack merely limped along.
So even though an era is over, RadioShack will still leave a legacy as the cornerstone of the early electronics business. However, even as the darkness descended?on the era of RadioShack, a new light flashed as Standard General claimed ownership of the retail giant.
The new owner of the now defunct retailer, hedge fund giant Standard General, won the bid for ownership. They plan to partner with cellphone carrier Sprint. The proposed plan as it stands right now is for?Sprint to operate around 1750 of the 2400 stores purchased by Standard General. However, the other 2700 RadioShack stores will be closed and left vacant until the property is purchased. However,?the future of the electronics industry still remains bright even if the big R with the circle won’t be a part of it anymore.
