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Amazon Mulling RadioShack Stores: Report

Others contenders could include Brookstone and Sprint 2/03/2015 10:30:00 AM Eastern

Fort Worth, Texas – Amazon.com may be looking to pick up some RadioShack locations for use as showrooms and fulfillment centers, according to published reports.

Citing “people with knowledge of the matter,” Bloomberg said the e-tailer discussed the possibility of buying select RadioShack storefronts following an expected bankruptcy filing by the beleaguered CE chain.

Amazon would use the locations to showcase its proprietary CE product line, including Kindle e-readers, Fire tablets, Fire TV streaming media devices, Echo smart speaker and Fire Phone, the sources said, and customers could use the stores as pick-up and drop-off points for online orders.

Amazon isn’t the only business purportedly interested in RadioShack’s real estate. Bloomberg also pointed to Brookstone owner Sailing Innovation and mobile carrier Sprint as possible contenders for some of the retailer’s 4,200 stores, with the latter having considered between 1,300 and 2,000 locations.

Differing scenarios have RadioShack then shutting the remainder of its locations or, according to a Wall Street Journal report, making a go of it from a greatly-reduced store base with backing from lead lender and possible stalking horse bidder Standard General.

Separately, the chain has received a second notice of default from its term-loan lender Salus Capital Partners and has been delisted by the New York Stock Exchange (NYSE). Salus, which has repeatedly blocked efforts by RadioShack CEO Joe Magnacca to shut upwards of 1,100 unproductive or overlapping stores, said it plans to sue, while the NYSE has suspended trading of RadioShack shares and is moving to have the company delisted for failing to meet mimimum qualifications.

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