RadioShack Owners Band Together in Hopes of Influencing Bankruptcy Case
The news keeps coming for RadioShack, none of it good since the retailer filed for Chapter 11 bankruptcy protection February 5. Now, a group of franchisees has formed a committee to try to exert some control over the court process and influence what might happen to their stores.
Calling itself an ad hoc committee, the RadioShack Dealer Group has signed up 60 people representing more than 100 stores so far, and has put out a call for more members. There are more than 900 dealer/franchise stores in the United States.
“RadioShack has been an iconic American brand and it’s sad that it finds itself in bankruptcy,” said Ira Brezinsky in a statement, chair of the ad hoc committee and also a RadioShack franchisee, is inviting others to participate.
“The dealer group will look out for the interests of its participants and hopes to be as helpful as possible and positively influence the bankruptcy proceedings to protect the interests of the relatively strong performing dealer/franchise stores.”
Richard Mikels and Adrienne Walker, of Mintz Levin in Boston, are the group’s counsel before the bankruptcy court.
Other interests are already lobbying for position in the case. For example, this week brought news that RadioShack’s largest shareholder, hedge fund Standard General that owns 10 percent of the shares, agreed to bid $20 million for the retailer’s name and other intellectual property. An auction will be held March 23 for those assets, CNN Money reported.
The auction was pushed later after a committee of unsecured creditors complained that Standard General had an unfair advantage.
In February, the New York Stock Exchange suspended trading in shares of RadioShack, right before the filing.