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The Last Of The Last Days At RadioShack

Written by Ken Gaebler
Published: 2/6/2015

With the electronics retailer poised to close its doors for good, the NYSE moves to delist the company's shares.

For years, RadioShack has served as a case study for small businesses seeking branding advice and information about how to successfully adapt their companies to the marketplace. But it finally appears that RadioShack may be on the verge of calling it a day and closing its doors.

RadioShack Bankruptcy Filing

Although it's still possible that a buyer could appear and continue to operate the electronics chain, numerous media outlets are reporting that the brand is in talks to make an exit from the marketplace.

RadioShack in Talks with Sprint

According to Reuters and other sources, RadioShack is preparing a bankruptcy deal that will transition half of its stores to Sprint. Sources have indicated that Sprint and RadioShack may co-brand these stores, while the other half of RadioShack's existing stores would close.

For years, RadioShack has served as an example of a brand that failed to adapt to a rapidly changing electronics industry. From the brand name to its product line, RadioShack has continuously lagged behind the evolution of the consumer tech industry.

As CNET recently pointed out, the company's efforts to move away from its reputation as a gadget parts provider and a rebranding effort were unable to turn the business around. Last year, RadioShack closed 1,100 stores, citing underperformance.

NYSE Moves to Delist

In a development that compounded the beleaguered chain's problems, the NYSE started the process to delist the company's shares. Last month, the NYSE gave RadioShack a warning that it had 45 days to develop a business plan--the second warning issued to the company in the past year.

The NYSE issues notices to companies whose average market cap falls below $50 million for 30 consecutive days. The catalyst for the initiation of the delisting process came when RadioShack declined to develop a business plan to increase its market cap and bring itself back into compliance with the terms dictated by the NYSE.

However, for industry insiders, the delisting was the inevitable outcome of the company's failure to fully embrace mobile and other products that dominate today's consumer electronics market.

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