Struggling consumer electronics chain RadioShack has filed for bankruptcy for the second time in just over two years.
Fort Worth, Texas-based RadioShack filed its petition in bankruptcy court in Delaware on Wednesday and said it will close about 200 of its more than 1,500 locations.
The company did not provide information on whether any of its Long Island stores would be affected. There are currently about 28 locations on the Island, according to the company website. Five other Long Island stores were recently vacated, according to court documents.
In February 2015, RadioShack announced it would close 21 of its then nearly 60 stores on Long Island as part of a plan to shutter at least 1,784 stores. Others survived as part of an agreement with wireless carrier Sprint to open mini-shops to sell mobile devices and Sprint plans in RadioShack stores.
General Wireless Operations Inc., part of hedge fund Standard General, acquired the RadioShack trademark and many of its stores after its 2015 bankruptcy. RadioShack was founded in 1921.
As part of its bankruptcy filing on Wednesday, the company said 187 stores “have been winding down” and will close in the next few days. Additionally, the company intends to close or transfer 365 stores to Sprint by March 31. It will “evaluate options” for the remaining stores, according to court documents.
RadioShack has retained Melville-based commercial real estate and investment group A&G Realty Partners to manage the sale of store leases.
In a statement, RadioShack president and chief executive Dene Rogers said since the company’s bankruptcy filing in 2015, the retailer had made progress in stabilizing operations, reducing operating expenses by 23 percent. The company currently has about 5,900 employees.
But Rogers said several factors — including the partnership with Sprint, which was not as profitable as expected — prompted the latest bankruptcy filing.
“We evaluated the performance and location of Sprint-RadioShack stores and reached an agreement with General Wireless Operations to convert several hundred doors into Sprint corporate-owned stores,” Kevin Crull, president of omnichannel sales for Sprint, said in a statement Wednesday.
With The Associated Press