Dive Brief:
- After the holidays did little to change its fortunes, RadioShack Corp. is preparing for bankruptcy protection, sources say.
- The retailer may seek Chapter 11 protection, which could help it reorganize, but may be forced into Chapter 7 if things are too far gone for that.
- The company is in discussions with Sprint Corp. to take over some of its store leases, sources say.
Dive Insight:
Under a Chapter 11 bankruptcy protection order, RadioShack may finally get what it’s been after for months: a fleet of 2,000 to 3,000 stores compared to its current 4,000. That’s the best case scenario for the crippled retailer; worst case is Chapter 7 bankruptcy with little hope of reorganization.