RadioShack gets $75 million in new financing through General Wireless

By Kali Hays

New York, July 6 – RadioShack Corp. has completed an agreement with its largest single asset purchaser General Wireless Operations Inc. for new financing totaling $75 million, according to a Monday news release.

The funding consists of a $50 million ABL credit facility led by RBC Capital Markets and a $25 million first-in last-out term loan led by Great American Capital Partners, LLC. Great American is a wholly owned subsidiary of B. Riley Financial, Inc.

General Wireless, which is now doing business as RadioShack, said that the new financing will allow the company to “continue investing in and improving the brand” with plans to enhance RadioShack’s in-store experience, deliver a new mix of electronic products and develop its “game changing partnership” with Sprint Solutions, Inc.

As previously reported, General Wireless acquired 1,743 RadioShack locations as part of the company’s initial asset sale and intends to operate Sprint stores within RadioShack stores across the United States.

Ron Garriques, RadioShack’s chief executive officer, said the company has “ambitious plans” and that the new financing gives “the new and invigorated RadioShack the ability to fully implement our strategic plan to provide superior products and services to over 1,200 communities,” according to the release.

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

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