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Old 02-05-2015, 05:14 PM
 
4,230 posts, read 5,756,546 times
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Quote:
Originally Posted by Emigrations View Post
For the stores to be sold, there would have to be a party willing to buy them. I don't see any reason why Sprint would want to saddle itself with these underperforming stores.
Sprint is in a race to the bottom given their current EPS. I expect Sprint will be next in line for BK.
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Old 02-05-2015, 09:08 PM
 
3,855 posts, read 7,689,496 times
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Quote:
Originally Posted by City Guy997S View Post
Yeah but if they go bankrupt (Chap 7, total liquidation) then the landlords get nothing anyway.....so they aren't on the hook for a single dollar of future rent. Chap 7 means it is all sold off right down to the last office chair.
The latest news is they filed Chapter 11. So they can continue to operate, but are selling off most of their stores. Sprint wants the stores for the spaces due to their ideal size and strategic locations. If Chapter 7 had occurred, and a total liquidation took place, Sprint would have to negotiate directly with the landlords and pay market rates for the leases. In Chapter 11, Sprint would get the stores from RS for pennies at favorable lease terms. The landlords would otherwise have to find new tenants. It could take months if not years to fill those vacancies. Sprint immediately fills that void. So all parties including RS, Sprint, and the landlords benefit from this deal.

The irony in this whole mess is that Sprint is a big reason why RS went bankrupt in the first place. RS's fate was sealed long ago, but the Sprint deal a few years ago hastened their decline. Sprint fed RS a poison pill with the cell phone contracts. Then Sprint pulled the carpet out from under their feet by opening their own brick and mortar stores undercutting RS in the process. RS was overly reliant on the cell phone sector to begin with as it made up over 50% of their business. When Sprint undercut them, RS's profitability plummeted.

Had RS never gotten in bed with Sprint, they would likely still be around for another 5 years.
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Old 02-06-2015, 06:54 AM
 
30,405 posts, read 31,291,526 times
Reputation: 14045
I have been to Radio Shack relatively recently. But I have noticed that some items that I can get in Staples are much cheaper in Staples than in Radio Shack. So it isn't surprising to me that Radio Shack has been losing business over the years.
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Old 02-06-2015, 07:15 AM
 
Location: Whereever we have our RV parked
8,080 posts, read 7,092,483 times
Reputation: 13556
Personally, I'm amazed that they stayed in business this long. IN the HiFi days, when everyone wanted a big stereo system, their stuff was poorer quality and higher priced than the competition. I never could figure out why anyone shopped there except for the occasional odd electrical part you might need.
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Old 02-06-2015, 02:19 PM
 
805 posts, read 733,490 times
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I started working for computer city in 98 right before they sold to compusa. Tandy was starting its death spiral then and never recovered. Computer City was a 100 times better then compusa but tandy wanted it gone. Ofcourse we see what has happened to compusa. They didn't change with the times and most often had terrible prices on equipment. Some people got some great deals due to employee discounts though. lol I remember one manager at compusa taking all of the giftcards that were worth less then a few dollars people would turn in and he would combine them onto one gift card and buy stuff with it. talk about honesty.
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Old 02-06-2015, 06:55 PM
 
225 posts, read 105,941 times
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In my town there are 8 Radio Shack stores, 5 will close and 3 remain.
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Old 02-06-2015, 07:31 PM
 
Location: Atlantis
3,019 posts, read 3,128,977 times
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If Radio Shack could just be 'to big to fail', then the government could bail the company out with taxpayer money.
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Old 02-06-2015, 08:26 PM
 
Location: Back in the gym...Yo Adrian!
9,371 posts, read 17,519,044 times
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Quote:
Originally Posted by Mid America Lifer View Post
In my town there are 8 Radio Shack stores, 5 will close and 3 remain.
Great, you'll have three stores where you can buy pagers and Betamax players.
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Old 02-06-2015, 09:00 PM
 
Location: Columbia SC
7,995 posts, read 6,758,990 times
Reputation: 10740
Quote:
Originally Posted by augiedogie View Post
Personally, I'm amazed that they stayed in business this long. IN the HiFi days, when everyone wanted a big stereo system, their stuff was poorer quality and higher priced than the competition. I never could figure out why anyone shopped there except for the occasional odd electrical part you might need.
I agree. They were always a step behind technology.
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Old 02-07-2015, 01:20 AM
 
Location: U.S.A., Earth
4,347 posts, read 2,624,033 times
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1) They sold 3D printers and drones? Even though I doubt they were priced competitively, at least they were somewhat desired.
RadioShack employees wonder: What's next? - Feb. 3, 2015

2) I had a hs buddy who joined the US Navy. He was going to do welding (my dad suggested I tell him to avoid it, as it's not a thing you can keep up in the long term), but it turned out he scored well enough on his ASVAB or some other test that they had him go into electronics. After a good deal of his classes, we went into a RS (last decade) to the large # of bins containing electronic parts. His training allowed him to identify many of them. Even the 'Y' shaped flux capacitor that makes time travel possible ... blast from the past.. they were issued Windows Mobile handhelds... These competed with Palm OS... NOT to be confused with Windows Phone of today.

3) I used to joke how if I move into a smaller suburban area, that place having a RS, Gamestop, and churches/buildings of religious worship of at least 2 different groups would be my measuring stick of how "civilized" it would be. Granted, I wouldn't really set foot into any of those buildings, but it'd still be nice to know they're there.

Quote:
Originally Posted by headingtoDenver View Post
See, this is where I think VPs and CEOs have lost touch with the reality of little things. Seriously, rent a UHaul for 100 bucks, fill it to the brim with the remaining merch and drive it to the warehouse or other stores. It is the mentality of the people in charge that crack me up. This is no different then when you move yourself. You are strapped for cash, but only look at the top moving companies to move you. The cheapest moving company will charge you 5 grand and you think that this is your only option.

My point is, if they REALLY wanted to close the stores, they could have made it happen.
Do you really not see the fallacy of such arguments? If they have kept touch with the reality of things, RS would still be competitive and not in this rut! Misery loves company.

When the economies of scale are different, you really can't use the "when you do this yourself" phrase. For example, you may have some neat idea with saving electricity for your 500, 3000 sq ft, or whatever house, but doesn't mean that a place like Walmart can use it. Last I heard around last decade, their annual electricity bill alone was $1 billion.

Quote:
Originally Posted by Jimrob1 View Post
I heard RS was having serious problems a year ago. So I'm surprised they lasted this long. Pretty soon we may have no where to shop but Walmart. Just this week. I have heard Sears, Penny's, Macy's, Dillards are closing numerous stores, and just today that all 133 Targets in Canada must close immediately. Liquidate all stores. It's just a matter of time before Target in this country will be closing stores also. I don't how Walmart keeps going. I really don't care for the store.

So good bye to Radio Shack I guess. They certainly have been around for many decades. Can't say I remember the last time I was in one.
Dillards is closing? no attachment to them other than I have a family member who does some marketing thing with them (and they must be a Midwest thing, as I have yet to see one in on the middle, east coast).

Target closing down in Canada? That's sad. In the US!? That's scary. While some stuff I get from Walmart, others from Target (cheaper, nicer, or worth the extra few $ for it)... the latter did have a unique atmosphere and higher class than Walmart. If they go down under, Walmart will continue to run unchecked.

Last edited by ackmondual; 02-07-2015 at 01:34 AM..
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