Staff Writer
RadioShack
will most likely close its doors in a bankruptcy deal that will sell half of
its stores to Sprint Cellular. Its stock
has plummeted to under $1 a share and it can neither afford to close its stores
nor keep them open.
RadioShack
was established in 1921 as a mail-order catalogue for amateur radio hobbyists
and maritime communications officers. By the 80’s it had expanded to a large
network of brick-and-mortar stores that were seen as a destination for computer
parts and devices that were hard to find at the major retailers.
However,
RadioShack has had trouble adapting to the modern consumer electronics
industry. Many of their products are for a niche market of DIY electronics
hobbyists, a market that is largely dominated by online retailers.
RadioShack’s
stock tumbled to $0.24 a share on January 26, meaning that it has lost about 90
percent of its value since last year.
RadioShack
has been in talks with Sprint cellular to propose a sale or a dual-branding
agreement, but executives have said that RadioShack faces bankruptcy if it
fails to make an agreement by the end of the fiscal year.
