Credit: Getty Images
The report came as a shock as Amazon wanted to buy some RadioShack stores whereas RadioShack was also in talks to sell some of its stores to Sprint.
So this was a no-brainer that RadioShack was going to shut down one day. People stopped coming to RadioShack stores and RadioShack have been going into loss for a long time. Most people preferred going to Best Buy stores as they came up with better deals and had something what the people wanted.
Amazon is a great cloud service but at the same time they want themselves to be physically present near their customers. This is why they decided to take up some of the stores that were going to be sold by RadioShack.
Amazon wanted to increase their brick and mortar operations and that is why they contacted the RadioShack administration. Amazon wants to have pick up and drop off centers and these old RadioShack stores would be the perfect centers.
So as RadioShack are going bankrupt, Amazon want to setup a retail store. Amazon are going to face competition from other companies that are trying to acquire these RadioShack stores.
Some of those companies include investment group and Sprint Corp. Some sources believe that there are over 4000 RadioShack stores all across the United States. The company will try to sell as many stores as possible and it will shut down the rest of the stores.
Sprint were quick in offering RadioShack a deal and they said that they could take as many as 1300 to 2000 stores from them. We are still unclear on Amazon’s situation as one of their spokesperson was asked to comment on the situation and they refused to do so.
And the same thing happened when RadioShack spokespersons were asked to comment on their situation. Rumors suggest that Sprint and RadioShack want to discuss co-branding the stores.
Some people believe that RadioShack want to give their project to a bidder that is willing to continue RadioShack’s operations. In that case, Amazon is going to have a tough time negotiating.
If RadioShack decides to sell their stores to Sprint, those stores would be named after Sprint which means RadioShack will stop to exist as the only retailer. Some people believe that negotiations will break down and Sprint will not be willing to meet the terms of conditions put forward by RadioShack.
Sources: Bloomberg 1 , 2
Share this Story
You Might Also Like
Read the Latest from I4U News
blog comments powered by Disqus