General Wireless Operations, the RadioShack successor created by a partnership between Sprint Corp. and the defunct retailer’s owners, is preparing to file for bankruptcy, according to people familiar with the matter.
A filing could happen within the coming days and will probably result in liquidation, said the people, who asked not to be identified because the process isn’t public. The beleaguered company, which does business as RadioShack, operates outlets that share space with Sprint’s retail locations, as well as franchising the name to other stores.
Investors had thrown $75 million in lines of credit and term loans at the business, which was used for "renovated locations and updated inventory". That's less than $60,000 per store — chickenfeed in today's world, where renovating a McDonalds can run between $500,000 and $2,000,000, and you're not trying to pivot.