A proposed sale of RadioShack’s name and intellectual property has just been approved a U.S. bankruptcy judge. According to the terms of the deal, the bankrupt RadioShack will sell its brand name and customer data to General Wireless for approximately $26 million.
General Wireless, an affiliate of Standard General, reportedly acquired more than 1,700 RadioShack stores this past March for about $160 million.
Sale, Auction Generated Some Controversy
A bankruptcy judge has recently approved the sale of RadioShack’s name and intellectual property, a Denver bankruptcy attorney explains. Contact us for help getting a business out of debt.
Although the sale of RadioShack’s name and property is clear to move forward, some bidders that had hoped to compete for the RadioShack property at auction have claimed that the auction process was unfair. Namely, these bidders pointed out that RadioShack had:
- Put a stop to incremental bidding during the auction
- Gave the bidders only 30 minutes to present their final bids (under seal).
These bidders had been hoping to get the judge to reopen the auction (and negate the sale to General Wireless); however, the judge overseeing this case rejected that bid, noting that RadioShack had the right to change the bidding procedures at auction.
This underscores how bankruptcy judges are generally disinclined to reopen auctions, as it could present the opportunity for bidders to come forward after the fact, presenting new bids only after a business’ assets have been evaluated/appraised.
General Wireless Will Keep RadioShack Open
While there are still various logistics to wrapping up the RadioShack Chapter 11 bankruptcy case, General Standard will reportedly be keeping the RadioShack stores open, hoping to turn the brand and business around. One of the plans for doing this reportedly includes co-branding RadioShack with Sprint.
What do you think about the progress of RadioShack’s bankruptcy case? Do you think the brand can be turned around via co-branding with Sprint? Share your comments & opinions with us on Facebook and Google+.
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