RadioShack’s name is up for sale, with bids starting at $20 million.
Hedge fund Standard General, the company’s largest shareholder, tried to win approval from the U.S. Bankruptcy Court proceedings on Wednesday, to lead the bidding for RadioShack’s name at a March 23 auction, according to multiple and reports from U.S. Bankruptcy Court proceedings on Wednesday.
Standard General plans to buy as many as 2,000 RadioShack stores. The fund had previously planned to co-brand stores with Sprint, and hadn’t outlined what it planned to do with RadioShack’s name.
The proposal is seen as a concession to those creditors who have argued that Standard General has received preferential treatment before and during RadioShack’s bankruptcy. The creditors, Cerberus Capital Management and Saluls Capital Partners, are seeking a combined $250 million, which RadioShack owes them. The two have been suspicious about the circumstances around RadioShack’s Feb. 5 bankruptcy filing, which they argue favors Standard General.
RadioShack has said it will either sell or close all of its 4,000 outlets by the end of March. Read more…