RadioShack, the troubled consumer electronics company, has filed a Chapter 11 bankruptcy petition and announced it will close 1,789 of its 4,000 retail stores across the country by the end of March.
Twenty-one stores on Long Island will be shuttered, among them the stores in Mattituck and Wading River, according to documents filed in filed in U.S. Bankruptcy Court in Delaware on Thursday.
RadioShack said in a press release it has reached an “agreement in principle” with General Wireless Inc., an affiliate of Standard General, LP, to sell between 1,500 and 2,400 company-owned stores. The agreement is subject to court approval.
General Wireless has agreed in principle on terms with Sprint to establish a new dedicated mobility “store within a store” retail presence in up to 1,750 of the acquired stores, the company said. This agreement-in-principle is subject to negotiation of definitive documentation as well as court approval, according to the press release.
The Riverhead store was not on the list of stores to be closed before the end of next month. It was not immediately clear if the Riverhead location is a company-owned store that’s part of the proposed asset purchase agreement with General Wireless, if it would be closed some time after March 31, or if it is a franchise store that’s subject to neither the Chapter 11 proceeding nor the asset purchase agreement.
RadioShack has 1,000 franchise stores in 25 countries, according to the press release.
The company posted a nearly $400 million net loss for the first nine months of 2014, with a quarterly net loss of more than $161 million in the third quarter alone, according to its third-quarter financial report released in December.
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