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RadioShack Files for Bankruptcy — Parallax Forums

RadioShack Files for Bankruptcy

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  • ercoerco Posts: 20,256
    edited 2015-02-05 19:13
    Yes, all the stores near me except one are closing. Big clearance signs up for a month now. It's really happening, kind of sad. Stores are half emptied and well picked over. Amazon and Sprint may be leasing the locations: http://forums.parallax.com/attachment.php?attachmentid=113074&d=1423191979
  • Phil Pilgrim (PhiPi)Phil Pilgrim (PhiPi) Posts: 23,514
    edited 2015-02-05 19:16
    Very little has been published about the fate of franchise and associate stores, like the one in my town. I suspect their fate will hinge on the ability to get RS-branded inventory.

    -Phil
  • NWCCTVNWCCTV Posts: 3,629
    edited 2015-02-05 19:35
    Where have you guys been? I heard about this the beginning of the week. I think I will go see what they have to pick through.
  • Dave HeinDave Hein Posts: 6,347
    edited 2015-02-05 19:43
    Yes, we all know that RadioShack was planning on closing stores, but according to the news reports they filed for bankruptcy today.
    Electronics retailer RadioShack Corp filed for U.S. bankruptcy protection on Thursday

    Andy, where did you hear that they had filed for bankruptcy at the beginning of the week?
  • ercoerco Posts: 20,256
    edited 2015-02-05 19:54
    NWCCTV wrote: »
    Where have you guys been?

    Where indeed! IIRC, we were all at Parallax HQ for the wild & crazy P2 launch party. Ken flew us all in, hotels, cars, booze and party girls were on Parallax. Sill stobering up. I'm not as think as you drunk I am, pister molice occiffer.

    So where were you, at home reading newspapers all week?
  • NWCCTVNWCCTV Posts: 3,629
    edited 2015-02-05 20:31
    Dave Hein wrote: »
    Andy, where did you hear that they had filed for bankruptcy at the beginning of the week?

    Kiro news ran a story Wednesday stating Amazon was going to be buying up some of the locations. I will see if I can dig it up. I am pretty sure they said RS filed Monday but I could be wrong. (Might just be a Brian Williams moment!!!)
  • NWCCTVNWCCTV Posts: 3,629
    edited 2015-02-05 20:33
    The store in Sea-Tac Mall and the one right across the street have been closed since Saturday and are directing people to the one about 6 miles up the road.
  • JLockeJLocke Posts: 354
    edited 2015-02-05 20:35
    The articles I've read say that Sprint may be taking over some of the locations.
  • NWCCTVNWCCTV Posts: 3,629
    edited 2015-02-05 20:37
    My bad. The KIRO story did not specifically say they filed, but the way they made it sound was that they had. I was going to post about it but got caught up in real work!!!

    http://www.kirotv.com/ap/ap/business/hopes-of-a-radioshack-revival-fade-with-stock-to-b/nj4Xb/
  • cgraceycgracey Posts: 14,155
    edited 2015-02-05 23:46
    Oh, no! It's the end of an era.

    Radio Shack was, by far, the most important store of my youth. I bought my first stereo there on layaway for $121.

    I think they owe us (Parallax) some money, too. Good thing we didn't supply them with all those Arduinos I saw last time I was in there! Hopefully, we won't take too hard of a hit.
  • LeonLeon Posts: 7,620
    edited 2015-02-06 01:27
    That is a pity. They used to be called Tandy here in the UK, after the founder of the company, because there was an existing radio amateur's emporium called Radio Shack. Tandy was originally a leather goods supplier.

    Most Tandy stores were franchise operations.

    My first proper computer was a TRS-80, and I formed a popular users group for it - NATGUG - which is still going.
  • ValeTValeT Posts: 308
    edited 2015-02-06 04:07
    This is definitely sad....I got all of my first electronic kits there, and am sad to see RS go out of business.

    Maybe a couple will be able to make it, hopefully.
  • Martin_HMartin_H Posts: 4,051
    edited 2015-02-06 04:55
    It's more than sad. I shop at Radio Shack frequently for random small parts when I forget an item from a Digikey order. Where am I going to buy a pack of 4.7 K 1/4 watt resistors the next time I run out? Or cable clips? Or solder?

    That parts drawer that I, and probably no one else looked at, was my personal drawer of odds and ends. To the clerks it was a mysterious box that a strange man would come in and poke around in. Only to come to the checkout with some item they didn't know they had, for a purpose they couldn't guess. They knew it was futile to say "can I help you?" because the contents of the parts drawer was an Eldridge mystery from a bygone era.
  • TorTor Posts: 2,010
    edited 2015-02-06 05:20
    Somewhere else it was said that this bankrupty is of the 'chapter 11' kind. If so, can't they come back from the dead? Apparently 10% of the c11 ones do.

    -Tor
  • TorTor Posts: 2,010
    edited 2015-02-06 05:25
    Martin_H wrote: »
    That parts drawer that I, and probably no one else looked at, was my personal drawer of odds and ends. To the clerks it was a mysterious box that a strange man would come in and poke around in. Only to come to the checkout with some item they didn't know they had, for a purpose they couldn't guess.
    Haha, that reminds me of the old hardware shop in my hometown.. as long as it was still run by the original family they had drawers with content going back fifty years or more. With small screws and nuts and all kinds of old metal parts. And that's where you would find just about anything you needed for something special or for something old.
    And they even sold those things for the original price!
    Sadly the shop was taken over by the husband of the youngest member of the original family, and that guy had no idea. He quickly dumped all of the old stuff, changed the shop to sell kitchenware, and promptly went out of business.

    -Tor
  • LoopyBytelooseLoopyByteloose Posts: 12,537
    edited 2015-02-06 07:32
    Tor wrote: »
    Somewhere else it was said that this bankrupty is of the 'chapter 11' kind. If so, can't they come back from the dead? Apparently 10% of the c11 ones do.

    -Tor

    Yes, they can come back and even go into Chapter 11 again and again. The American auto industry has done so. But the real question is wheter the Radio Shack brand has any value. Why bother coming back if your brandname is worthless? Heathkit has tried, but seems unable to do so.

    I reallize that there are a lot of Radio Shack fans here that got started with them. But it may be time to let go. The real estate is likely to be picked over to pay creditors (including Parallax). And their business model seems no longer viable.
  • Ron CzapalaRon Czapala Posts: 2,418
    edited 2015-02-06 07:52
    erco wrote: »
    Yes, all the stores near me except one are closing. Big clearance signs up for a month now. It's really happening, kind of sad. Stores are half emptied and well picked over. Amazon and Sprint may be leasing the locations: http://forums.parallax.com/attachment.php?attachmentid=113074&d=1423191979

    Yeah - The one closest to me had a big sign saying "Up to 70% off" but the salesperson said 25% off everything. It was really picked over...

    I didn't get much - a phone line recording interface, Wisher breadboard and 500 pack resistor assortment.
  • GordonMcCombGordonMcComb Posts: 3,366
    edited 2015-02-06 07:52
    Loopy Byteloose wrote: »
    The real estate is likely to be picked over to pay creditors (including Parallax).

    There is no real estate. RS didn't own any of their corporate run stores. They even leased back their headquarters offices (they once owned it, but sold it years ago).

    What RS has is leases, which they might be able to sell, depending on the location. Selling a lease doesn't necessarily provide them a profit, as there are many other costs associated with closing each store.

    I've read the deal with Sprint allows some (up to about a third) of the RS stores to remain open, with half or more of each store area devoted to RS products. I think this is the Chapter 11 plan.

    About 20% of RS stores are franchise owned, and not affected by the bankruptcy, though they are currently in limbo regarding purchasing new product.

    I believe Amazon's interest in the stores doesn't equate to any win for RS shoppers. Amazon simply wants the locations for their own use.
  • Oldbitcollector (Jeff)Oldbitcollector (Jeff) Posts: 8,091
    edited 2015-02-06 08:09
    The ritual Friday night trip to the mall arcade included a stop a Radio Shack when I was a teenager.
    Walking through the isles of electronics fired the imagination with all the possibilities that could be.
    A few minutes of that, combined with making sure I got my free battery card filled and fooling with the CoCo display made for great memories. RS will be missed.

    I was the in a second hand shop a couple weeks ago and simply couldn't pass up on a $3.00 Science Fair 150 in 1 electronics kit.
    It's in near perfect condition, and I need to find it a good home with a young person who will us it.
  • kwinnkwinn Posts: 8,697
    edited 2015-02-06 08:43
    GordonMcComb wrote: »
    There is no real estate. RS didn't own any of their corporate run stores. They even leased back their headquarters offices (they once owned it, but sold it years ago).

    Many years back we bought the assets and receivables of a company that did pretty much the same thing. They started off by purchasing the equipment and fancy office furnishings, then as they ran short of cash sold things to a leasing company for cash and leased it back. That only helped for a while.
    What RS has is leases, which they might be able to sell, depending on the location. Selling a lease doesn't necessarily provide them a profit, as there are many other costs associated with closing each store.

    I've read the deal with Sprint allows some (up to about a third) of the RS stores to remain open, with half or more of each store area devoted to RS products. I think this is the Chapter 11 plan.

    Similar to what happened with RS here in Canada. They were bought by Bell and now operate as the Source. Mainly in mall locations with phones, TV's, laptops etc., and very little in the way of electronic parts. Sad really.

    About 20% of RS stores are franchise owned, and not affected by the bankruptcy, though they are currently in limbo regarding purchasing new product.

    I believe Amazon's interest in the stores doesn't equate to any win for RS shoppers. Amazon simply wants the locations for their own use.

    If the franchise owners want to stay in business they should look for alternate suppliers and expand their parts inventory. Getting together and operating as a single entity would also be a good move.
  • rogersydrogersyd Posts: 223
    edited 2015-02-06 09:50
    I bought my first WAM kit, and BOE BOT at my local shack many moons ago. For introducing me to the hobby and parallax, RS will always have a soft spot in my heart. I'm heading to the local shop today to scavenge for deals.
  • NWCCTVNWCCTV Posts: 3,629
    edited 2015-02-06 09:57
    I too bought my first WAM kit at the Shack. That was about 10 or so years ago. I remember as a kid it was Radio Shack, a Tandy Company and the one in our town carried more leather working stuff than electronics!!!! I do however remember going there to get different stereo components as a kid. The two that are closest to me are sending all there inventory 6 miles up the road. I am going to stop in today to see if there are any deals. Chances are that there will not be much but it's worth a try since I will be up that way any how!!!
  • PublisonPublison Posts: 12,366
    edited 2015-02-06 10:09
    kwinn wrote: »


    If the franchise owners want to stay in business they should look for alternate suppliers and expand their parts inventory. Getting together and operating as a single entity would also be a good move.

    NTE components are always a good alternative to RS components.

    And we know NTE will be in business for a wile.
  • Chris SavageChris Savage Parallax Engineering Posts: 14,406
    edited 2015-02-06 10:29
    cgracey wrote: »
    Oh, no! It's the end of an era. Radio Shack was, by far, the most important store of my youth. I bought my first stereo there on layaway for $121.

    My entire interest in electronics started when I would peruse the Radio Catalog back in the late 70s / early 80s. I got started with their various kits and notebooks written by Forrest Mims III. Despite the changes over the years since then I will always have those fond memories of my beginnings into electronics via Radio Shack.
  • Heater.Heater. Posts: 21,230
    edited 2015-02-06 10:41
    Man, you guys were lucky.

    Over there in Blighty in the 60's and 70's us kids had, well, nothing.

    Some how as a teenager I was introduced to electronics, via HAM radio enthusiasts with their tube gear.

    When us teenagers wanted actual transistors, 74 series logic, LEDs, etc we had to truck 70 miles to London and visit places like the Henry's Radio store on the Edgeware Road to get it.

    It was kind of interesting as a teenager to visit Lisle Street in the middle of London. A small back street full of stores that were either selling war surplus electronics gear or were sex shops!
  • ercoerco Posts: 20,256
    edited 2015-02-06 10:48
    Chris Savage wrote: »
    My entire interest in electronics start when I would peruse the Radio Catalog back in the late 70s / early 80s. I got started with their various kits and notebooks written by Forrest Mims III. Despite the changes over the years since then I will always have those fond memories of my beginnings into electronics via Radio Shack.

    +1. The Shack and Forrest Mims' books led directly to me winning the Science Fair in 11th Grade (Light Beam Communications) and landing a design job at Mattel 30 years ago. Loved wandering through the stores (Battery of the Month Club!) and browsing the Shack catalogs, every bit as good as the old Sears Christmas wishbook catalogs. Even though the Shack got diluted by cell phones and such in recent years, it was still fun to go there and have ready access to the parts drawers that Martin_H (as he mentioned) and I had mostly had to ourselves. I will definitely miss the Shack.
  • Heater.Heater. Posts: 21,230
    edited 2015-02-06 11:48
    Take trip down the Radio Shack memory lane with Dave Jones on his EEVBlog https://www.youtube.com/watch?v=Gq8ly6TQQu8
  • ratronicratronic Posts: 1,451
    edited 2015-02-06 12:12
    I can say that when I was 11 or 12 years old my parents bought me one of those hundred and something kits that came in a wood box - that was my first start into electronics.
  • Ron CzapalaRon Czapala Posts: 2,418
    edited 2015-02-06 12:56
    Here are some of my early RS purchases..

    attachment.php?attachmentid=113079

    Shack.jpg
    Shack.jpg
    800 x 362 - 65K
  • ercoerco Posts: 20,256
    edited 2015-02-06 13:10
    http://www.radioshackcatalogs.com/catalog_directory.html

    The Shack's old catalogs will live online forever! A shoutout to Jim (Publison) for turning me onto these a while back. Looking at the catalog covers, it's easy to see that a large measure of the Shack's success in the 70's and 80's was from large audio-related products. Speakers, amps, Dolby cassettes & turntables. More recently, the public's preference for iPods and MP3 players didn't help their bottom line.

    A notable quote from that page: In 1963, Charles Tandy purchased Radio Shack Corporation, a company
    on the edge of bankruptcy, for a mere $300,000.

    52 years later, history (bankruptcy) repeats itself. Could a modern visionary snatch it up and save the day?

    attachment.php?attachmentid=113080&d=1423257025
    catalogs.jpg
    670 x 830 - 266K
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