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.
