RadioShack gets approval of closing sales, procedures on lease bidding

By Kali Hays

New York, Feb. 20 – RadioShack Corp. obtained final permission to assume a consulting agreement and conduct store-closing sales and approval of bid procedures for the sale of some property leases on Feb. 20, under separate orders from the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, RadioShack began store-closing sales at more than 1,700 of its locations in the United States on Feb. 5.

The company entered into an agreement under which joint venture with Hilco Merchant Resources, Gordon Brothers Group and Tiger Capital Group will manage the store-closing process.

RadioShack’s bankruptcy filing calls for the sale of between 1,500 and 2,400 of its company-owned stores in the United States to General Wireless Inc., while the remaining stores will be closed.

“The approved bid procedures are related to certain remaining property leases with value that can be monetized through a sale process,” according to a motion.

Under the approved procedures, the bid deadline is 12 p.m. ET on Feb. 20 or 4 p.m. ET on Feb. 24 for bidders who are current holders of a lease on any property included in the sale.

A minimum bid amount was not set, but any bid must be accompanied by a cash deposit equal to $20,000 per lease.

If RadioShack receives one or more qualified bids for the leases, an auction will be held on Feb. 25 with a sale approval hearing to follow on Feb. 27.

RadioShack is a Fort Worth technology retailer that filed for bankruptcy on Feb. 5. Its Chapter 11 case number is 15-10197.

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