On the same day that hhgregg announced it was filing for Chapter 11 bankruptcy, news started to circulate that another big name in consumer electronics was heading down a similar, albeit familiar, path. General Wireless Operations, the parent company for RadioShack, hinted on Tuesday that they likely would bring the struggling electronics convenience chain back to bankruptcy court for the second time in as many years.
According to a Wall Street Journal report this week, General Wireless has already begun closing around 200 stores and is negotiating with Sprint to close even more.
When RadioShack first filed for bankruptcy back in February 2015 and was put up for auction, it was General Wireless—an affiliate of the same hedge fund that offered the CE chain a rescue loan the year prior—that stepped in to purchase the rights to the name and around 2,400 RadioShack locations. General Wireless then worked with Sprint to set up mini Sprint stores within a majority of the RadioShack stores, similar to the smartphone “stores” you see in Best Buy and Target, only run by a single brand.