Privately-held General Wireless Operations (d/b/a RadioShack) and three affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Delaware, lead case number 17-10506. The Company, which was formed to purchase and operate certain assets of electronics retailer RS Legacy (p/k/a RadioShack), is represented by David M. Fournier of Pepper Hamilton.
According to documents filed with the Court, “While the retail business progressed, the Sprint relationship did not yield the benefits that the Debtors anticipated….The Debtors’ many stakeholders, who were expecting a considerable cash influx from Spring during the 2016 calendar year and beyond, lost faith that the Debtors would ever receive those commission payments….As a result, …the Debtors determined that they had insufficient capital to operate as a going concern outside of bankruptcy. As such, the Debtors have determined that it is in the best interests of the Debtors’ estates and their creditors to file these chapter 11 cases, to permit the Debtors to conduct store closing sales and reject leases at locations that are underperforming, and pursue a sale of restructuring of its remaining assets.”
General Wireless Operations’ petition indicates assets greater than $100 million. RadioShack initiated a previous Chapter 11 filing in October 2015.
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