Remember RadioShack? Sure you do. Back in the day it was the place to buy random cables, connectors, radio-controlled cars, and the like. But then Monoprice and Amazon kinda ruined that for ol’ RS. RadioShack then tried to sell more consumer devices and act as an authorized vendor for cell phone companies, but no one cared. Because why do I want to go to RadioShack for any of that? The erstwhile DIY electronics leader filed for bankruptcy this past February, trying to pay off more than $1 billion in debt and shut down our convert most of its stores.
Hedge fund Standard General snatched up 1,740 shares of RadioShack stock in March. Standard General attempted to convert RadioShack into a “premier community destination for consumer electronics,” as The Washington Post said, shedding its inventory of brand-name gadgets and focusing solely on things like batteries, cell phone chargers, and headphones. Oh, and Sprint phones. Lots of Sprint phones.
That plan hasn’t panned out entirely, and today, Standard General purchased RadioShack’s name and intellectual property for a cool $26.2 million, up from the starting bid of $15 million. That little bit of IP includes invaluable customer data. General Wireless, Standard General’s wireless affiliate, says it will streamline the RadioShack brand even further, focusing on “necessities” and Sprint products. If a Sprint contract isn’t a necessity, I don’t know what is. My whole world is crashing down, people.
Will RadioShack 2.0 rise like a Lazarusian beast, undeterred and unable to be vanquished again? Only time will tell. Standard General clearly sees some value in the brand even if everyday consumers don’t. We’re not in Woolworth’s territory yet.
Source: Wall Street Journal
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