(Reuters) - U.S. electronics chain RadioShack Corp filed for bankruptcy on Wednesday for the second time in a little over two years, faced with a challenging retail environment and an unsatisfying partnership with wireless provider Sprint Corp.

The Chapter 11 filing comes after RadioShack, owned by General Wireless Operations Inc, tried to revitalize its business by co-branding stores with the wireless carrier in an effort to compete against their largest rivals.

General Wireless, which acquired the RadioShack brand in 2015, listed assets and liabilities in the range of $100 million to $500 million in the U.S. bankruptcy court for the Delaware district.

RadioShack will close approximately 200 stores and will evaluate options on the remaining 1,300, the company said in a statement.

Sprint will convert several hundred locations into Sprint corporate-owned stores, the wireless provider said in a separate statement.

RadioShack’s bankruptcy filing and subsequent store closings are not material to Sprint’s overall sales results, Sprint added.

RadioShack, a nearly 100-year-old chain that captured the heart of electronics enthusiasts for its specialty products such as “walkie talkies”, first filed for bankruptcy in 2015 after the rise of mobile phones caught it off-guard and customers abandoned its stores for big box competitors including Best Buy Co Inc and Amazon.com Inc.

In an attempt to keep the doors open on 1,740 stores, RadioShack struck a partnership with Sprint during its bankruptcy, inviting the mobile carrier to co-brand with the company and set up smaller stores within its own.

At the time, Sprint viewed RadioShack’s retail footprint as a way to quickly scale up its own business and RadioShack hoped to benefit from increased liquidity in the form of rent and commission payments from Sprint.

But, in the years since RadioShack has emerged from bankruptcy, both Sprint and RadioShack have been challenged.

Sprint, whose network is viewed by analysts as inferior to the country’s largest carriers, Verizon Communications Inc and AT&T; Inc, has been forced to offer heavy discounts to grow its business.

Sprint’s challenges, which led to sales dropping “precipitously” toward the end of last year, meant RadioShack received less than expected in commission, RadioShack said in papers filed on Wednesday.

“The Sprint relationship did not yield the benefits” RadioShack was anticipating, it said.

RadioShack, meanwhile, has struggled to compete against internet behemoth Amazon.com and for the attention of shoppers who increasingly wait for deep discounts before making a purchase.

The exterior of a RadioShack store is seen in New York February 5, 2015. REUTERS/Brendan McDermid

The influx of cheaper copycat consumer products manufactured abroad has also hurt the business.

Still, in the years since its first bankruptcy, RadioShack has focused on expanding its private label offerings, which include drones, radios and adapters, and now makes up the majority of its business.

The shift away from selling other retailers’ products to its own has helped it reduce operating expenses and increase gross profit.</s>Electronics retailer RadioShack has filed for bankruptcy protection for the second time in just over two years.

The Fort Worth-based retailer filed its petition in bankruptcy court in Delaware on Wednesday.

The company says it's closing about 200 stores and evaluating options on the remaining 1,300.

In a statement, RadioShack President and Chief Executive Dene Rogers said that since the company's bankruptcy filing in 2015, the retailer had made progress in stabilizing operations, including reducing operating expenses by 23%.

But Rogers said several issues, including a partnership with wireless carrier Sprint that proved not to be as profitable as expected, prompted the latest bankruptcy filing.

General Wireless, part of hedge fund Standard General, acquired the RadioShack trademark and many of its stores after its 2015 bankruptcy.

RadioShack was founded in 1921. Long known as a place to find batteries and obscure electronic parts, in recent years the company tried to remake itself as a specialist in wireless devices and accessories.

That strategy largely was stymied by the advent of smartphones.

RadioShack has tried to update its image but faces formidable competition from online and discount retailers.

A side-by-side comparison of Obamacare and the GOP's repeal plan

The 25 best-paying jobs in the U.S.? Find a career in healthcare or tech</s>In times of uncertainty, it is best to trust our systems. There are systems that keep us safe such as air traffic control, providing that we arrive at safely distant destinations. There are street light systems that help us cross at busy intersections. In our government, we must have faith in systems, including our separation of powers and a free press.

For the business world, other systems such as the Chapter 11 processes, may not be well understood, but many experts argue are critical.

The Chapter 11 set of processes are especially important at this period of time for the universe of stakeholders that I wrote about recently in "Avaya’s Chapter 11 filing sends waves of disruption." In this follow-up post, I’ll talk a bit about the Chapter 11 processes and provide some information I gained recently that makes me feel just a bit more comfortable about the future for that universe that surrounds Avaya. Part of this is some recent research and part is due to a briefing that I participated in with Avaya corporate treasurer John Sullivan.

In 2009, Sen. Elizabeth Warren (at the time professor at Harvard Law School) and Jay Lawrence Westbook, professor at University of Texas Law School, wrote that among “the pantheon of extraordinary laws that have shaped the American economy and society and then echoed throughout the world, Chapter 11 of the U.S. Bankruptcy Code deserves a prominent place.”

The two co-authored the scholarly paper analyzing Chapter 11 cases. Their writing came shortly after a revamp of the U.S. bankruptcy laws in 2005 and is a defense of system in the face of “critics,” who they say “often insist that economic efficiency requires the near abandonment of Chapter 11.”

Warren and Westbrook further said, “Because the Chapter 11 hospital is explicitly designed to deal with both ailing patients and corpses, the business failure rate can be understood better if the two kinds of cases are separated.”

A further distinction they make, that is important to our discussion, is between “the debtor's ability to advance a plan—any plan—of reorganization” and those who don’t. Their research showed that “the success rate soars to more than 70 percent” when a plan is offered.

This brings me to some of what I learned in the briefing with Mr. Sullivan. In a recent meeting with a group of analysts, consultants and media, Sullivan expanded, saying that at Avaya, “we’re still operating, we’re still moving forward, and it is really more like the American Airlines or the Pacific Gas and Electric [cases] where those companies used Chapter 11 for a certain purpose and they emerged stronger and healthier.” Sullivan emphasized, “Clearly there is no threat to our continued operation.”

Juan Gonzalez, research director at Frost & Sullivan, asked Sullivan, “Why did Avaya not announce a plan for reorganization prior to filing for Chapter 11?” Gonzalez explained that in many markets, especially in the region subject of his expertise Latin America, processes like Chapter 11 for business reorganizations don’t exist. Gonzalez explained that in those markets, Avaya’s lack of a plan contributed to “uncertainty” about the company’s future.

Sullivan said, “First of all, Chapter 11 is not something that you want to go into unless you are really out of other options.” In 2015, Avaya refinanced about $2.6 billion of debt through an “amend and extend” process at “very favorable rates,” he said. “That was very successful.”

Today, however, “the markets are more expensive, interest rates are starting to rise,” Sullivan said. He explained that Avaya has currently maturing debt and using the markets to refinance would increase Avaya’s interest expense significantly. Sullivan described this as a “snowball effect,” where the debt would become untenable.

In response to Gonzalez’s question, Sullivan chose to restate. He said, why did Avaya not renegotiate with the company’s creditors and have a “pre-packed deal like Aspect?”

Aspect Software, an Avaya competitor, recently used the Chapter 11 systems in a process of “Deleveraging Its Balance Sheet.” In fewer than two months, Aspect successfully emerged from Chapter 11, crediting a “pre-arranged agreement.”

As to a plan for Avaya’s reorganization, Sullivan said, “The issue with us is that we have a very diverse set of debt holders. Many of them are passive. So, we had nowhere even close to having a majority of them involved in the discussion with us. We couldn’t get a majority together.”

Sullivan then added that the company intends to file a plan with the court sometime in March. He said there is confidence that “if we can get a certain momentum, with a certain number of our creditors agreeing, then the bankruptcy court can impose a solution. That’s why we decided that Chapter 11 was the right tool to use to get this done, and we are trying to get this done as soon as we can.”

The bottom line out of this for me was an increased sense of confidence in Avaya’s future. In the terminology used by Warren and Westbrook, Avaya is no “corpse.” A look at recent financial reports from the company buoys Sullivan’s statement showing that although revenue is down, a fact that is true of many companies competing in Avaya’s industries, other measures—including “Non-GAAP operating income” and “Adjusted EBITDA”—for Avaya are hitting record levels.

Those impacted members of the ecosystems that surround Avaya can also hopefully take solace. The patient may be in “the Chapter 11 hospital,” but prognosis seems to be trending in the right direction. When the Avaya plan is revealed in March, based upon the research presented by Warren and Westbrook, the odds swing in Avaya’s favor.

This article is published as part of the IDG Contributor Network. Want to Join?</s>INDIANAPOLIS, Ind. – Just days after announcing the closure of dozens of stores last week, Indianapolis-based HHGregg filed for Chapter 11 bankruptcy.

The company said it reached a deal with an undisclosed party “to purchase the assets of the company.” The deal will allow HHGregg to “exit Chapter 11 debt free with significant improvement in liquidity for the future stability of the business.” The petitions were filed Monday in the U.S. Bankruptcy Court for the Southern District of Indiana.

“We’ve given it a valiant effort over the past 12 months,” Robert J. Riesbeck, president and CEO, said in a statement. “We have conducted an extensive review of alternatives and believe pursuing a restructuring through Chapter 11 is the best path forward to ensure HHGregg’s long-term success. We are thankful for the continued support of our dedicated employees, valued customers, vendors and business partners as we navigate this process, and look forward to becoming a stronger company in the coming months.”

HHGregg said it hopes to emerge from Chapter 11 in about 60 days. Restructuring will allow the business to reach its long-term goals and boost profitability, the retailer said.

The appliance and electronics chain announced plans last week to close 88 stores and three distribution centers nationwide. Company officials said its remaining 132 stores will continue normal operations during the restructuring.</s>FORT WORTH, Texas — RadioShack has filed for Chapter 11 bankruptcy protection for the second time in just over two years, putting the future of the nearly 100-year-old electronics retailer in doubt.

Once known as the place to buy batteries and obscure electronic parts, RadioShack has struggled to hang on to customers as more people shop on Amazon.com and other online retailers.

It redesigned its stores about three years ago and stocked its shelves with popular headphone brands and the latest gadgets. But that didn’t attract more shoppers and the retailer filed for bankruptcy protection in 2015. After that, it tried to lure smartphone-loving shoppers by opening Sprint wireless carrier shops within 1,200 RadioShack locations. But that didn’t help either: RadioShack CEO Dene Rogers said Thursday that mobile phone sales were “surprisingly poor,” especially in recent months.

RadioShack said Thursday that it is in the process of closing 200 of its stores and will evaluate its options for the remaining 1,300. Sprint, meanwhile, said Thursday that it signed a deal to turn several hundred RadioShack locations into Sprint stores, but declined to give a specific number.

RadioShack, based in Fort Worth, Texas, has nearly 5,900 employees, according to bankruptcy paperwork filed on Wednesday.

The company said that its stores will remain open, but said that anything sold cannot be returned. Anyone with a RadioShack gift card has until April 7 to spend it.</s>This Tuesday, Feb. 3, 2015 file photo shows a RadioShack store in Dallas. Troubled electronics retailer RadioShack has filed for bankruptcy for the second time in just over two years.

Start the conversation, or Read more at Powhatan Today.</s>Electronics retailer RadioShack has filed for its second bankruptcy in two years and will close about 200 of its 1,500 stores.

The Fort Worth, Tex.-based company previously filed for bankruptcy in 2015. Since then, General Wireless, a joint venture of hedge fund Standard General and Sprint, acquired the chain and ran 1,700 stores.

General Wireless announced Thursday that it had entered a Chapter 11 filing in the U.S Bankruptcy Court in Delaware.

RadioShack is closing about 200 stores and is evaluating options on the remaining 1,300, the company said. Stores remain open for business, as does its website RadioShack.com, which promoted a clearance sale on its home page.

The first Radio Shack store opened in Boston in 1921 ham radios and other radio equipment, according to Twice Magazine's "96 Years of RadioShack History."

Over the years, RadioShack established itself as a neighborhood destination for loudspeakers, mobile phones, satellite TV, batteries and toys. It also sold the first mass-marketed, fully-assembled PC, the TRS-80, for which Bill Gates once wrote the operating system.

As recently as 2013 sales, the company was the eighth-largest consumer electronics dealer, according to Twice.

By 2014, RadioShack was losing $200 million annually in the mobility business alone, according to the bankruptcy filing. The company has been run as a privately-held company since the 2015 bankruptcy.

“Over the course of the past two years, our talented, dedicated team has worked relentlessly in an effort to revitalize the Company and the RadioShack brand, while providing outstanding service to our customers. We greatly appreciate their hard work and dedication," said RadioShack CEO and President Dene Rogers in a statement.

Last year, RadioShack reduced operating expenses by 23% while increase gross profit by 8%, with the help of partner Sprint, which managed wireless sales at the stores, Rogers said. The chain sold more than one million RadioShack headphones and speakers in the U.S., while also adding FedEx services in 140 stores.

"However, for a number of reasons, most notably the surprisingly poor performance of mobility sales, especially over recent months, we have concluded that the Chapter 11 process represents the best path forward for the Company," Rogers said. "We will continue to work with our advisors and stakeholders to preserve as many jobs as possible while maximizing value for our creditors.”</s>FORT WORTH, Texas (AP) — RadioShack has filed for Chapter 11 bankruptcy protection for the second time in just over two years, putting the future of the nearly 100-year-old electronics retailer in doubt.

Once known as the place to buy batteries and obscure electronic parts, RadioShack has struggled to hang on to customers as more people shop on Amazon.com and other online retailers.

It redesigned its stores about three years ago and stocked its shelves with popular headphone brands and the latest gadgets. But that didn’t attract more shoppers, and the retailer filed for bankruptcy protection in 2015.

After that, it tried to lure smartphone-loving shoppers by opening Sprint wireless carrier shops within 1,200 RadioShack locations. But that didn’t help, either. CEO Dene Rogers said Thursday that mobile phone sales were “surprisingly poor,” especially in recent months.

Previous story: Sprint to set up shop as RadioShack files for bankruptcy

RadioShack said it is in the process of closing 200 stores and will evaluate its options for the remaining 1,300. Of those remaining locations, Sprint Corp. said it will turn “several hundred” of them into Sprint-only stores, but declined to give a specific number.

RadioShack, based in Fort Worth, Texas, has nearly 5,900 employees, according to bankruptcy paperwork filed on Wednesday. The company said it will try to “preserve as many jobs as possible.”

Its stores are open for business, but RadioShack said that anything sold at them cannot be returned for a refund. Its website, however, will continue to accept returns on items bought from RadioShack.com. The company said that those holding a RadioShack gift card have until April 7 to spend it at stores.

RadioShack, which was founded in 1921, is owned by General Wireless Operations Inc., which bought the brand after its 2015 bankruptcy. New York-based hedge fund Standard General is a shareholder in General Wireless.</s>RadioShack has filed for Chapter 11 bankruptcy protection for the second time in just over two years, putting the future of the nearly 100-year-old electronics retailer in doubt.

Once known as the place to buy batteries and obscure electronic parts, RadioShack has struggled to hang on to customers as more people shop online.

It redesigned its stores about three years ago and stocked its shelves with popular headphone brands and the latest gadgets. But that didn't attract more shoppers, and the retailer filed for bankruptcy protection in 2015.

After that, it tried to attract smartphone-loving shoppers by opening Sprint wireless carrier shops within 1,200 RadioShack locations. But that didn't help, either. CEO Dene Rogers said Thursday that mobile phone sales were “surprisingly poor,” especially in recent months.

RadioShack said it is closing 200 stores and will evaluate its options for the remaining 1,300. Sprint Corp. said it will turn “several hundred” of the remaining locations into Sprint-only stores, but declined to give a specific number.

Sprint said it will allow all its own employees at the joint stores to transfer to another Sprint store. The company said RadioShack’s bankruptcy filing and the store closures “are not material” to Sprint’s overall sales results.

RadioShack, based in Fort Worth, has nearly 5,900 employees, according to bankruptcy paperwork filed on Wednesday. The company said it will try to “preserve as many jobs as possible.”

Its stores are open for business, but RadioShack said that anything sold at them cannot be returned for a refund. Its website, however, will continue to accept returns on items bought from RadioShack.com. The company said that those holding a RadioShack gift card have until April 7 to spend it at stores.

RadioShack has faced an increasingly competitive market in its once-signature niche, as bigger retailers such as Wal-Mart Stores Inc. and Costco Wholesale Corp. and even wireless carriers began to sell similar items. The growth of e-commerce sites such as Amazon.com also bit into RadioShack’s sales, said Joseph Feldman, senior managing director at the Telsey Advisory Group.

“No consumer electronics store sells a differentiated product,” said Michael Pachter, research analyst at Wedbush Securities. “There’s nothing they sell that you need to go to their store to get.”

RadioShack, which was founded in 1921, is owned by General Wireless Operations Inc., which bought the brand after its 2015 bankruptcy. New York-based hedge fund Standard General is a shareholder in General Wireless.

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1 p.m.: This article was updated with information about RadioShack jobs.

10:05 a.m.: This article was updated with comments from Sprint and analysts.

This article was originally published at 6:50 a.m.</s>Troubled electronics retailer RadioShack has filed for bankruptcy for the second time in just over two years.

The Fort Worth, Texas-based retailer filed its petition in bankruptcy court in Delaware on Wednesday.

The company says it's closing about 200 stores and evaluating options on the remaining 1,300.

Troubled electronics retailer RadioShack has filed for bankruptcy for the second time in just over two years. The Fort Worth, Texas-based retailer filed its petition in bankruptcy court in Delaware on Wednesday, March 8, 2017

In a statement, RadioShack President and Chief Executive Officer Dene Rogers said since the company's bankruptcy filing in 2015, the retailer had made progress in stabilizing operations, including reducing operating expenses by 23 percent.

But Rogers says several reasons, including a partnership with wireless carrier Sprint that proved not to be as profitable as expected, prompted the latest bankruptcy filing.

General Wireless, part of hedge fund Standard General, acquired the RadioShack trademark and many of its stores after its 2015 bankruptcy.
RadioShack files for chapter 11 protection from creditors for the second time in two years.