Six area Radio Shack stores on ‘potential closure list’

Radio Shack has identified six of 10 Wichita-area stores it could close as part of its bankruptcy filing.

The Fort Worth, Texas, company filed for Chapter 11 reorganization bankruptcy on Thursday after years of declining sales.

Six area stores were included on a “Potential store closure list” on Radio Shack Corp.’s website Friday. It was not clear how likely the stores on the list were to close or whether they might be part of a deal with Sprint Corp. The stores listed include:

▪ 2021 N. Amidon, Suite 123, a 2,500-square-foot store

▪ 3411 N. Rock Road, Suite 110, a 2,000-square-foot store

▪ 4600 W. Kellogg, a 3,149-square-foot store inside Towne West Mall

▪ 2413 N. Maize Road, Suite 101, a 2,700-square-foot store at NewMarket Square

▪ 2570 S. Broadway, Suite 100, a 2,400-square-foot store

▪ 1029 Washington Road, a 2,400-square-foot store in Newton.

As part of the bankruptcy, Radio Shack’s largest shareholder, Standard General, plans to acquire up to 2,400 of the electronics retailer’s 4,000 company-owned stores in the U.S., through its General Wireless subsidiary.

General Wireless has agreed to a separate deal with Sprint Corp. to operate in 1,750 of those stores.

The nation’s third-largest wireless carrier said its agreement with General Wireless allows it to operate Sprint stores in the Radio Shack stores. Sprint said it will occupy one third of the space at each Radio Shack store, with Sprint employees selling mobile devices and plans. The stores in which Sprint shares space with Radio Shack will be co-branded, though Sprint will be the primary brand on storefronts and marketing materials, Sprint said.

The rest of the stores would carry RadioShack products, Sprint said in a statement. Other wireless carriers’ products would no longer be available at the stores.

Sprint chief executive Marcelo Claure said in the statement that the companies would benefit from marketing to each other’s customers. He also called the deal a quick and cost-effective path to expand Sprint’s store count in “prime locations.”

The deal requires approval by the bankruptcy court in Delaware. The financial terms were not disclosed.

Overland Park-based Sprint owns 1,100 stores and has dealers that expand the current footprint to about 3,100 locations. A year ago, the company said it would close an unreported number of less-profitable stores and idle about 300 to 500 employees.

Sprint said it would need to hire an undetermined number of employees to help staff the new stores from the RadioShack agreement.

Radio Shack Corp. said it plans to close its remaining company-owned stores and sell their remaining inventory, a plan that also awaits court approval.

The area Radio Shack stores not on the potential closure list include three in Wichita – 1050 S. Oliver, 448 S. Rock Road and 4848 S. Broadway – and one in Derby.

Contributing: Kansas City Star

This story was originally published February 6, 2015 at 4:22 PM with the headline "Six area Radio Shack stores on ‘potential closure list’."