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RadioShack Files for Bankruptcy - Page 3 — Parallax Forums

RadioShack Files for Bankruptcy

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  • PublisonPublison Posts: 12,366
    edited 2015-02-07 15:45

    Finally one must remember that any store Sprint keeps open comes with a trained sales force to sell their phones...a significant value in itself.

    But they will know less then most Radio Shack personnel about the RS stock. I'm afraid they will be clueless about resistors and capacitors.

    Doesn't look like a good mix IMHO.
  • Heater.Heater. Posts: 21,230
    edited 2015-02-07 15:53
    Too_ Many_Tools,
    ...a trained sales force to sell their phones...a significant value in itself.
    Oh yeah, that is what the world needs, more people who know how to sell phones.

    Round here people line up in their hundreds to buy a new Apple phone when it comes out. I even had to order and wait for my original Samsung Galaxy S years ago. Phones fly off the shelf with no trained sales force required.
  • mspeediemspeedie Posts: 12
    edited 2015-02-07 17:28
    In Phoenix we've got Fry's Electronics. Hopefully you can find something similar...
  • NWCCTVNWCCTV Posts: 3,629
    edited 2015-02-07 17:32
    Heater. wrote: »
    Too_ Many_Tools,


    Oh yeah, that is what the world needs, more people who know how to sell phones.
    My thoughts exactly. When I buy a cell phone I have already done all my research online and have figured out what I want before I even get on the phone and order it. I do not need some idiot teenager trying to sell me something I neither need nor want. My nephew once worked for AT&T and he was as bright as a blown light bulb!!!! I already had AT&T and told him what I wanted for a phone and I wanted to grandfather in my unlimited data plan. He said it could not be done. Well, two weeks after that I called AT&T, got the phone I wanted along with the plan I wanted and even got a $100.00 credit for being a long time customer.

    EDIT: And Fry's needs to open more stores in more centralized locations. Ours is in Renton, about 20 minutes from me unless it is a normal day. Then it can be anywhere from 30 minutes to an hour.
  • Too_Many_ToolsToo_Many_Tools Posts: 765
    edited 2015-02-07 18:29
    LOL...my love for the cell market is similar...but...that is where the money is...and where the competition is really heating up.

    I do laugh watching the cell companies beating each other up...considering how they have been soaking the public in the past.
  • Too_Many_ToolsToo_Many_Tools Posts: 765
    edited 2015-02-07 18:32
    NWCCTV wrote: »
    My thoughts exactly. When I buy a cell phone I have already done all my research online and have figured out what I want before I even get on the phone and order it. I do not need some idiot teenager trying to sell me something I neither need nor want. My nephew once worked for AT&T and he was as bright as a blown light bulb!!!! I already had AT&T and told him what I wanted for a phone and I wanted to grandfather in my unlimited data plan. He said it could not be done. Well, two weeks after that I called AT&T, got the phone I wanted along with the plan I wanted and even got a $100.00 credit for being a long time customer.

    EDIT: And Fry's needs to open more stores in more centralized locations. Ours is in Renton, about 20 minutes from me unless it is a normal day. Then it can be anywhere from 30 minutes to an hour.

    Yes Frys really really does need to expand....but Radio Shack going down the drain is not going to encourage Frys management to stick their necks out any time soon.
  • Too_Many_ToolsToo_Many_Tools Posts: 765
    edited 2015-02-07 18:37
    FWIW....Radio Shack really did do a great job of hosting documentation on line for their past products.

    One should really do an inventory of any Radio Shack equipment you own and download any documentation from the site before it goes away.
  • Too_Many_ToolsToo_Many_Tools Posts: 765
    edited 2015-02-07 18:56
    Heater. wrote: »
    Too_ Many_Tools,


    Oh yeah, that is what the world needs, more people who know how to sell phones.

    Round here people line up in their hundreds to buy a new Apple phone when it comes out. I even had to order and wait for my original Samsung Galaxy S years ago. Phones fly off the shelf with no trained sales force required.

    LOL...my thoughts exactly...but considering the money you will see many attempts to gain an edge.
  • LoopyBytelooseLoopyByteloose Posts: 12,537
    edited 2015-02-08 00:09
    It isn't that the world needs people that know how to sell phones, Sprint and other phone service companies need highly trained sales people that are able to present customers an array of plans that confound analysis in any rational manner with enough charisma to close the sales inspite of all the customer abuse.

    A great source for such, is laid-off bank employess that were highly experienced in assisting customers in opening checking accounts. Bank loan officers are even more skilled in this consumer ledgerdomian.

    So Sprint needs locations for the unwary to wander in and get connected. You can't do this over the internet.
  • LeonLeon Posts: 7,620
    edited 2015-02-08 06:52
    Tandy still seems to be going in the UK:

    http://www.tandyonline.co.uk/

    http://www.tandyonline.co.uk/about-tandy

    They don't appear to have much to do with Radio Shack, although the Tandy logo is the same as when they were part of RS.
  • LoopyBytelooseLoopyByteloose Posts: 12,537
    edited 2015-02-08 08:07
    The bankruptcy supposedly only affects North America. I read something about Asia and Mexico not being included. Somehow I suspect this will keep the brandname alive nearly perpetually.

    Tandy may have previously split off from Radio Shack in Europe.

    Not sure where those Asian stores are. Not a one exists in Taiwan.

    On a global scale, it seems rather tangled. But Wikipedia seems to have kept up to date and what and where.

    http://en.wikipedia.org/wiki/RadioShack

    Only a year ago, we were blasted with this superbowl ad...
    https://www.youtube.com/watch?v=YpkixVDFpcI
  • LeonLeon Posts: 7,620
    edited 2015-02-08 10:15
    I was surprised to see that the Tandy leather goods company that took over the original Radio Shack is still trading:

    https://www.tandyleather.eu/en-gbp/home/home.aspx?countryid=1032

    http://en.wikipedia.org/wiki/Charles_D._Tandy

    Radio Shack apparently sold them off.
  • PublisonPublison Posts: 12,366
    edited 2015-02-08 10:31
    Counted up 26 stores closing in Connecticut. Not sure what percentage that is for the state.

    One local and not so local, (which stocks 50% more than my local), are not closing.

    One midway between the two is closing, but they were such a tiny store, I don't know how they made it this long.

    Boy, I wish I could buy the Parts Drawers, empty or full. They will probably go to the liquidators.
  • Ron CzapalaRon Czapala Posts: 2,418
    edited 2015-02-08 10:43
    Interesting article - helps explain part of their problems...

    What Radio Shack taught me: Lessons from a rookie salesman http://fortune.com/2015/02/08/radio-shack-career-lessons/?xid=yahoo_fortune
    Here are a few things the company taught me during my first entree into the working world.

    Knowing that you know nothing

    My first days on the job made for an exercise in infuriating ignorance. Sure, I could program my parents’ VCR and get them connected to the Internet, but I didn’t know my way from nickel cadmium to lithium ion. I knew so very little about the many, many different cords and adapters and other electronic parts that were packed into this small storefront space.

    At first, I tried to bluff my way out of my predicament, giving customers what I thought they needed. That was a disaster. After a few botched sales and subsequent returns, I decided I needed to try a different tack: embrace my ignorance and start asking questions to just about anyone, even customers. I figured they’d be better off with a novice salesman who knew he was a novice and was willing to admit it. After a while, I started to become more comfortable with the twinge of pain that would always come when I knew I didn’t know the answer. And by that time, I gradually began to know some of the answers.
  • GordonMcCombGordonMcComb Posts: 3,366
    edited 2015-02-08 10:44
    The bankruptcy supposedly only affects North America. I read something about Asia and Mexico not being included.

    For the US, bankruptcies are handled by the US federal court system, and they don't have jurisdiction over businesses in other parts of the world. If there are RS interests in other countries, they'd be handled by the court systems in those countries.

    Just as a reminder -- RS no longer goes by the name Tandy, and hasn't for 15 years. Any use of the name Tandy outside the US would likely be some offshoot, and not owned by RS.

    (Sort of reminds me of Thomson, which among other things bought out Technicolor a while back. Thomsons's fortunes faltered over the years, and they ended up selling other acquisitions, such as RCA. Anyway, 'Thomson' no longer exists. The company trades by the name Technicolor, which makes sense as it's the iconic brand.)
  • Too_Many_ToolsToo_Many_Tools Posts: 765
    edited 2015-02-08 14:22
    Publison wrote: »
    Counted up 26 stores closing in Connecticut. Not sure what percentage that is for the state.

    One local and not so local, (which stocks 50% more than my local), are not closing.

    One midway between the two is closing, but they were such a tiny store, I don't know how they made it this long.

    Boy, I wish I could buy the Parts Drawers, empty or full. They will probably go to the liquidators.

    LOL...already checked....the stores have been asked to charge $1000 for them...and they are getting it.
  • User NameUser Name Posts: 1,451
    edited 2015-02-08 23:27
    The conventional wisdom that you have to grow or die has always bugged me. RS expanded to the point that the only way they could stay in business was to morph into something else. I still treasure memories of leather, polyester resin, and electronic kits. Soldering...that's what I'll always credit Tandy for teaching me.
  • Heater.Heater. Posts: 21,230
    edited 2015-02-09 00:20
    The whole idea of "conventional wisdom" bugs me. Isn't it a contradiction in terms? If people keep expounding on the same old ideas because, well, that's the convention then that's not being wise now is it? That's just parroting.

    I do agree with you. It seems that as a company/corporation you have a couple of options grow and die or not grow and die :)

    It's interesting to look at the list of the oldest companies in the world. Dating back to the year 578 would you believe. http://en.wikipedia.org/wiki/List_of_oldest_companies#cite_note-346

    Most of them seem to be in Japan. Surprisingly few in the UK. The US hardly shows up what with being such a new place.
  • User NameUser Name Posts: 1,451
    edited 2015-02-09 00:44
    As a North American, I have to laugh in wonder and awe at such a list (re: world's oldest companies). In local adverts, it's not at all uncommon to see a company brag that they've been in business for 20 years(!).

    A lot of credit is due Parallax for being so consistent in such a new and dynamic industry. They're the bonsai masters of microcontrollers.
  • TorTor Posts: 2,010
    edited 2015-02-09 01:19
    Heater. wrote: »
    It's interesting to look at the list of the oldest companies in the world. Dating back to the year 578 would you believe. http://en.wikipedia.org/wiki/List_of_oldest_companies#cite_note-346

    Most of them seem to be in Japan. Surprisingly few in the UK. The US hardly shows up what with being such a new place.
    And I don't find Wuhan cymbals/gongs (Chinese company) in the wikipedia list.. they're at least 800 years old, possibly 1500, and their own web site claims that they have been hand-crafting gongs for 1900 years. You can still buy their goods in mainstream instrument shops.
    I guess one philosophy for some of these old companies is something like 'do what you do best'. Certainly not 'grow or die'.
  • LoopyBytelooseLoopyByteloose Posts: 12,537
    edited 2015-02-09 05:51
    Tor wrote: »
    And I don't find Wuhan cymbals/gongs (Chinese company) in the wikipedia list.. they're at least 800 years old, possibly 1500, and their own web site claims that they have been hand-crafting gongs for 1900 years. You can still buy their goods in mainstream instrument shops.
    I guess one philosophy for some of these old companies is something like 'do what you do best'. Certainly not 'grow or die'.

    Considering that the USA created a policy of bankruptcy due to many debtors being sent to America, it is not surprising that so few companies have lasted as long.

    On the other hand, in Japan the family inherits debt as well as wealth. Taiwan was similar for quite awhile, and so is or was Korea. I am not sure what modern China does.

    If you inherit the family debt, you are far more likely to be conservative in your business risk. And you are likely to be proud that your family has been in a successful enterprise for many generations.

    Going public on Wall Street in many ways a sell out of a private enterprise while allowing the original owners to retain control. What a publically listed stockholder gets is often not much more than a good story and a gamble.

    These days, it seems the 'smart money' has been either keeping enterprises private via investment banking, or taking private companies that outperform. What happened to Anhauser-Busch? Breweries are a great investment in a down economy, but you and I can't buy the stock -- it went private.
  • Ron CzapalaRon Czapala Posts: 2,418
    edited 2015-02-09 06:40
    More info

    Behind the Fall of RadioShack: A Tiny Lender That Got Into Trouble
    http://finance.yahoo.com/news/behind-radioshacks-collapse-tiny-distressed-193730445.html

    Excerpt
    To most outside observers, the collapse of RadioShack Corp. was set in motion years, if not decades, ago.

    Yet lost in that tale of inevitable decline is the story of how a little-known, distressed lender from Needham Heights, Massachusetts, helped sink the 94-year-old retailer into bankruptcy. It’s a relationship that went so wrong, so quickly that at times it bordered on dysfunctional, highlighting in the process the vicissitudes that often plague troubled companies searching for emergency financing.

    Even before the $250 million loan was disbursed in late 2013, RadioShack was threatening to sue the lender, Salus Capital Partners, for trying to back out of the deal, according to two people familiar with the transaction who asked not to be named because the talks were private. Months later, as RadioShack sought creditor approval to shutter stores in a bid to avert bankruptcy, Salus rejected the plan, which would have left fewer assets securing the loan. That refusal proved key in triggering last week’s Chapter 11 filing.
  • PublisonPublison Posts: 12,366
    edited 2015-02-09 06:57
    Ron,

    I was just about to post that. Missed it by THAT much. :)
  • Heater.Heater. Posts: 21,230
    edited 2015-02-09 06:58
    To this outsider it still looks like they were in trouble years ago. By the time they got to that loan it was already too late.
  • __red____red__ Posts: 470
    edited 2015-02-25 22:01
    They just finished their second of three rounds of closures today. I emptied what was left of their electronics section for the princely sum of $54 including tax.

    Receipt I believe gave an original price of just under $1000 (95% discount).

    My friend emptied a different store in the same town and negotiated a carrier-bag of stock for $10. It rang up to over $8000 MSRP for $60 iirc.

    Heartbreaking.
  • Ken GraceyKen Gracey Posts: 7,392
    edited 2015-03-18 08:46
    Today we received the "United States Bankruptcy Court District of Delaware Notice of Potential Assumption and Assignment of Executory Contracts and Unexpired Leases and Cure Amounts". Basically, this document lists every single debt of RadioShack, with the amount, type of debt and company name. RadioShack owes Parallax $78,000, and a tremendous amount to other companies too numerous to list and probably too sensitive to share unless it's already a public document.

    We realized this was a risk dealing with them in their final months. The damage could have been far worse, or it could have been none. However, the benefits of selling through their stores were tremendous. Many customers were introduced to Parallax through RadioShack.

    Remember, they're not gone - they're in bankruptcy and will likely emerge with a small number of stores.

    Ken Gracey
  • Ken GraceyKen Gracey Posts: 7,392
    edited 2015-03-18 08:46
    Today we received the "United States Bankruptcy Court District of Delaware Notice of Potential Assumption and Assignment of Executory Contracts and Unexpired Leases and Cure Amounts". Basically, this document lists every single debt of RadioShack, with the amount, type of debt and company name. RadioShack owes Parallax $78,000, and a tremendous amount to other companies too numerous to list and probably too sensitive to share unless it's already a public document.

    We realized this was a risk dealing with them in their final months. The damage could have been far worse, or it could have been none. However, the benefits of selling through their stores were tremendous. Many customers were introduced to Parallax through RadioShack.

    Remember, they're not gone - they're in bankruptcy and will likely emerge with a small number of stores.

    Ken Gracey
  • GordonMcCombGordonMcComb Posts: 3,366
    edited 2015-03-18 09:08
    Ken, Those kinds of debtor documents are typically public, but you have to go look for them (PACER, and all that, which involves a fee). Still, no sense in listing other debts and debtors, and just leave all that mess to the courts.

    Sorry to hear there was any loss, but the $78K might not be so bad, considering you may be able to claim some of it as a loss for tax purposes, and the remainder can be goodwill advertising. Even apart from the historical perspective of RS carrying Parallax product, the unpaid inventory will eventually end up being sold to someone and used, some by brand new customers who will know where to go to get more. Expensive form of ad, but perhaps not a complete loss.
  • PublisonPublison Posts: 12,366
    edited 2015-03-18 09:11
    RadioShack owes Parallax $78,000

    With 38,000 members on this forum, a $2.00 donation by each to Parallax will wipe that dept out. :)
  • mindrobotsmindrobots Posts: 6,506
    edited 2015-03-18 09:18
    Publison wrote: »
    With 38,000 members on this forum, a $2.00 donation by each to Parallax will wipe that dept out. :)

    Count me in, I'll go up to $20 if I get a sticker! :D

    Parallax has helped me, I'll help them.

    Family helps family!!!
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