RadioShack is asking the bankruptcy court to approve procedures Monday for the sale of about half of its stores to its largest shareholder, Standard General. Other companies also may be preparing bids.
The New York-based hedge fund, which is also a secured lender to RadioShack, has a plan to operate as many as 2,000 stores with wireless provider Sprint. That auction is expected to happen in a couple of weeks. The date and auction procedures are expected to be hammered out Monday at the hearing. RadioShack filed for bankruptcy in the Delaware court on Feb. 5.
Bloomberg News said Monday’s hearing promises to be contentious as lawyers debate whether Standard General made the best offer for keeping some of the chain’s 4,000 stores in operation.
On Friday, the court approved separate procedures to auction off the stores that RadioShack is closing. It has hired liquidators, and those closings are well underway. RadioShack is trying to minimize March rent payments.
The company filed its first monthly financial statements with the court. As clearance sales geared up, weekly sales volumes increased and are estimated to peak at $75 million this week. The weekly statements show that the company’s liquidity dwindles down with operations ending by the end of March.