RadioShack name sells for $26.2 million
May 14, 2015 02:40 PM
(Bloomberg)—The dismantling of RadioShack Corp. grew closer to completion with the auctioning of the 94-year-old electronics retailer’s name to hedge fund Standard General LP for $26.2 million.
Standard General, which bought hundreds of RadioShack store leases in March, prevailed this week in the bidding for the bankrupt chain’s brand name, a trove of customer data and other intellectual property, the hedge fund said Wednesday.
Any transaction is subject to approval by the court in Wilmington, Del., where the bankruptcy was filed in February. A sale-approval hearing for the name is set for May 20.
RadioShack, which was most recently ranked No. 317 in the Internet Retailer 2014 Top 500 Guide, entered bankruptcy after struggling to compete with big-box retailers and online merchants. It has since been pursuing a plan to have a Standard General affiliate take over hundreds of stores in a co-branding arrangement with Sprint Corp.
Standard General won the store auction in March with a bid worth about $145.5 million for 1,700 of the chain’s 4,000 locations.
Fort Worth, Texas-based RadioShack has also sold operations in Mexico and trademarks for the Middle East and South and Central America. Real estate, including three distribution centers, will be auctioned on June 11.
The proposed sale of customer information that the chain has collected over the years drew objections from 37 state attorneys general, who expressed concern about how a potential buyer might use the data and exactly what information was being sold.
RadioShack and Standard General will mediate with the states to resolve their concerns. That mediation is set to begin Thursday before Leif M. Clark, a retired U.S. bankruptcy judge in Texas.
“The firm has been working with the state attorneys general to ensure that the customer data is protected,” Standard General said in an emailed statement.
RadioShack said this month that the information it was selling included 8.5 million email addresses, 67 million complete customer name and physical address files, and certain transaction data. It wasn’t selling any credit or debit card numbers.
The company also said that the databases don’t contain any sensitive information and that any references to wireless carriers and specific mobility products will be eliminated from the transaction data.
Standard General said it has committed to maintaining RadioShack’s strict privacy policies, which prohibit the sale of customer data. The firm also noted how competitive the auction was, which it said boosted its confidence in the value of the RadioShack brand.