The announcement that the RadioShack Corporation has filed for bankruptcy has hit home in Richland County. The Walker Lake Road store is closing its doors, but the Lexington Avenue RadioShack store currently will remain open.
Large red and yellow signs advertising 30 and 50 percent off all merchandise went up in the storefronts of 2160 Walker Lake Road on Thursday, Feb. 5, when it was announced that the RadioShack Corporation and 17 affiliated debtors each filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware.
RadioShack currently has approximately 4,000 company-owned stores in the United States. The electronics company plans to close at least 1,784 stores by March 31, with the closures coming in three waves.
The first wave of closures includes 162 stores and is set to be complete by Feb. 17; the second wave includes 986 stores set to be closed by Feb. 28; and the third wave includes 636 stores slated to be closed by March 31.
The Walker Lake Road store will close by Feb. 28, during the second wave of closures. It is one of approximately 80 company-owned RadioShack stores projected to close in Ohio alone. The complete list of potential stores closing is posted to the RadioShack website, and RadioShack stated the company will know in the near future exactly which stores are closing.
The RadioShack at 1406 Lexington Avenue in Mansfield is also a company-owned store, and is currently expected to stay open. A representative from RadioShack’s media relations stated the company is not sharing its criteria for stores closing.
According to a RadioShack press release, the company intends to transition a portion of its stores to new ownership and begin a sale process for other company owned assets. General Wireless Inc., an affiliate of Standard General LP, has agreed to acquire between 1,500 and 2,400 of RadioShack’s U.S. company-owned stores.
“These steps are the culmination of a thorough process intended to drive maximum value for our stakeholders,” said Joe Magnacca, RadioShack’s chief executive officer, in a press release issued Feb. 5.
As stores begin to close, business will continue at RadioShack’s remaining retail stores and online, and the company expects to maintain day-to-day operations during the bankruptcy process. Subject to court approval, all gift cards will be honored through March 6.
