The 94-year-old retailer RadioShack has filed for Chapter 11 bankruptcy protection. The venerable but long-troubled electronics dealer is set to sell about 2,400 of its 4,000 US stores to a hedge fund. 1,750 of those stores will remain operational as Sprint retailers. The RadioShack brand will live on within those Sprint stores. RadioShack-branded products (parts, accessories) will be for sale in the new Sprint phone stores--and online.
Forbes writer Laura Heller believes RadioShack might yet be able reinvent itself again. The RadioShack brand still has broad recognition among consumers--recognition it would cost a new brand millions to establish. Going forward, RadioShack needs to take steps to ensure that its brand recognition positions the brand in a positive light, rather than as a has-been. Troubled American retailer Sears has similar problems.
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