RadioShack obtains court approval to sell assets to General Wireless

By Caroline Salls

Pittsburgh, April 1 – RadioShack Corp. received court approval to sell its assets to General Wireless Inc., according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Delaware.

In addition, the company obtained approval to sell its Sprint Mobility inventory to Sprint Solutions, Inc.

The General Wireless asset purchase agreement covers 1,743 “acquired” RadioShack stores.

The cash portion of the purchase price is equal to $3,000 multiplied by the number of acquired stores, plus any amount by which estimated credit bid consideration exceeds the amount of debt under the credit facilities held by the buyer or subject to participations in favor of the buyer at closing, plus a $250,000 donation item consideration amount and a $3 million store fixtures and spare pool inventory consideration amount.

Meanwhile, the credit bid portion of the purchase price is equal to the total inventory value of the acquired stores at closing, the amount of petty cash, minus the total amount of all assumed consumer liabilities, minus the total amount of all damage or destruction losses and equipment losses, minus a cure cost excess amount.

According to a news release, the joint venture group of Hilco Merchant Resources, Gordon Brothers Group and Tiger Capital Group announced Wednesday that it will manage a final phase of RadioShack store closings at an additional 361 locations throughout the United States. Sales are set to begin at these locations on April 2.

The joint venture said RadioShack has closed more than 1,700 company-owned store locations following its Chapter 11 bankruptcy filing.

The additional stores will be the last wave of store closing sales at RadioShack after the court approved the plan to reorganize RadioShack in a deal with Standard General and Sprint that will keep as many as 1,740 company-owned stores open throughout North America and preserve thousands of retail jobs, the release said.

Store fixtures and equipment are also available for sale at the closing locations.

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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