Radio Shack to file for bankruptcy

[samclem]

From the WSJ:

RadioShack Prepares Bankruptcy Filing

Struggling consumer electronics retailer RadioShack is preparing to file for bankruptcy protection as soon as next month.
The Fort Worth, Texas, company is in talks with a private-equity firm that could buy its assets out of bankruptcy, but the talks may not produce a deal, and the company may opt to pursue other debt-restructuring options that don't include a sale.

Like many, I'm amazed it took so long. One of my favorites from The Onion: Even CEO Can't Figure Out How Radio Shack Still in Business (from 2007!)

FORT WORTH, TX—Despite having been on the job for nine months, RadioShack CEO Julian Day said Monday that he still has "no idea" how the home electronics store manages to stay open.

"There must be some sort of business model that enables this company to make money, but I'll be damned if I know what it is," Day said. "You wouldn't think that people still buy enough strobe lights and extension cords to support an entire nationwide chain, but I guess they must, or I wouldn't have this desk to sit behind all day."
. . .
One of Day's theories about RadioShack's continued solvency involves wedding DJs, emergency cord replacement, and off-brand wireless telephones. Another theory entails countless RadioShack gift cards that sit unredeemed in their recipients' wallets. Day has even conjectured that the store is "still coasting on" an enormous fortune made from remote-control toy cars in the mid-1970s.
. . .
"I once went into a RadioShack location incognito in order to gauge customer service," Day said. "It was about as inviting as a visit to the DMV. For the life of me, I couldn't see anything I wanted to buy. . . "

Hopefully they emerge and something sustainable results.

 

[Fermion]

Nooooo!!!

Now where will I go to find a complete electronic component selection contained in one single drawer!

 

[travelover]

Darn! And I was about to build a crystal set.

 

[Lakewood90712]

Nooooo!!!

Now where will I go to find a complete electronic component selection contained in one single drawer!

Last time I was at the local radio shack , they were down to two cabinets of components, and a lot of empty spaces inside.

We have an old time electronics shop ( former TV repair place) , still has the owner at the counter. It's like a time warp , new old stock that will never sell along with some modern components, connectors, cable etc. I'm afraid when the owner dies (he owns the building , and several apt. buildings next door) it will be the end for us geeks. He will never retire.

 

[Ready]

I still remember hanging out in Radio Shack as a kid playing with the TRS-80, eyeing the build it yourself electronics kits, and buying my first CB Radio. It was a great store for many years. Unfortunately, it's just another example of a store which didn't keep up with the times and eventually became irrelevant. I honestly can't remember the last time I've visited a store, nor can I think of anything I would ever look to a Radio Shack to purchase at this point. It's probably best if it just goes away, as I don't see them ever turning it around and becoming relevant again.

 

[harley]

I've gone in a few times in the last few years to find cables and adapters to string my various old electronic devices to newer units that have different interfaces. I can always find these online, but sometimes I don't want to wait. But that's not a business model I would invest in.

As an off topic rant, Apple has completely hosed people that own older devices like my beloved iPod Classic (160GB). There is absolutely no way to bridge the old 30 pin device to the new Lightning plug, although you can sort of go the other way. I was getting a new boom box for my garage, and sometime in the last 2 years all the 30 pin units have disappeared. Everything is Lightning, and there's no way to get the Classic to play and charge on one of those. I consider it an abuse of power. </rant>

 

[AnIntentionalRoad]

I shop there once or twice a year. The last purchases were a 2 in, 1 out HDMI splitter. Before that a RC flying drone with camera.

As a kid it was my favorite store and I bought my first computer there at 13, a TRS80 CoCo.

Sent from my SM-T237P using Early Retirement Forum mobile app

 

[growing_older]

Sadly, moving from their old niche market of hobbyists and enthusiasts to the general public with a tiny but confusing array of generic phones didn't turn the business around. Who would have thought it? I rarely go in there anymore as their selection is minimal and the knowledgeable sales people left long ago. It's sad that an American icon has been gutted and will likely be abandoned, ironically just as the Maker movement is picking up steam and could really use a retail source.

 

[easysurfer]

I remember years back hearing that there are more Radio Shack stores than McDonalds.

Going to their website recently, it's hard to find anything like the old Radio Shack with old electronic components, etc.

 

[heeyy_joe]

Holy mackerel! Who's next, Sears?

 

[Major Tom]

In the 40's and 50's, they used to sell Hammarlund communications receivers, and high-quality air-spaced variable capacitors by manufacturers like EF Johnson, Hammarlund etc. If only they still did........ I'd go there on a regular basis.

It wouldn't be the best business model to follow, but I'd be happier than a pig in poop

 

[MichaelB]

From the WSJ:

Like many, I'm amazed it took so long. One of my favorites from The Onion: Even CEO Can't Figure Out How Radio Shack Still in Business (from 2007!)
./.
Hopefully they emerge and something sustainable results.

Thanks for the link and tip. Another vote for "what took them so long". This news article from a year ago, which showed an ad from 1991, where 13 of the 15 products on sale could be had on a mobile phone, was the writing on the walls for me. Everything from 1991 Radio Shack ad I now do with my phone | Trending Buffalo

 

[Helen]

I went in to a RS recently to buy a HDMI cable. They wanted $40 for it. I came home and ordered one online for $3. It wasn't the same quality, but I don't use it much. Plus, I can buy a lot of replacement cables for $40.00.

 

[samclem]

It's sad that an American icon has been gutted and will likely be abandoned, ironically just as the Maker movement is picking up steam and could really use a retail source.

Yep, the Arduino et al are natural follow-ons to much of the stuff RS sold in past decades. But, it's hard to see why customers would go there when no in-store salesperson is likely to be as smart as a group of online users. And available 24-7. With videos.

Still, with the gripes we all have with our laptops and software, with our smart phones, with our tablets--and much of it demands a hands-on and face-to-face help, it's hard to believe they can't find some way to make a buck. "Here's my Android. Let's talk about what I'd like to do with it. Show me how to . . ."

I used to love RS. I'll bet I've still got a Battery Card somewhere. There, and Lafayette Electronics, were places that got tired of seeing me.

 

[ExFlyBoy5]

I stopped going when they got so pushy about giving them your address and phone number. It was always tough to check out in a timely manner.

Sent from my mobile device so please excuse grammatical errors.

 

[laurence]

I've gone in a few times in the last few years to find cables and adapters to string my various old electronic devices to newer units that have different interfaces. I can always find these online, but sometimes I don't want to wait. But that's not a business model I would invest in.

As an off topic rant, Apple has completely hosed people that own older devices like my beloved iPod Classic (160GB). There is absolutely no way to bridge the old 30 pin device to the new Lightning plug, although you can sort of go the other way. I was getting a new boom box for my garage, and sometime in the last 2 years all the 30 pin units have disappeared. Everything is Lightning, and there's no way to get the Classic to play and charge on one of those. I consider it an abuse of power. </rant>

Harley, I have a ton of old 30 pin devices, I picked up some wires for them at home depot, I have lightning to 30 pin adapters, what specifically can't you do that I'm missing, because I haven't had any trouble and I have ~9 i-devices spanning a decade in my family of 5 (two ipod touch 1st generation, three Ipad 2s, Iphone 5, Iphone 6....etc.)

 

[harley]

Harley, I have a ton of old 30 pin devices, I picked up some wires for them at home depot, I have lightning to 30 pin adapters, what specifically can't you do that I'm missing, because I haven't had any trouble and I have ~9 i-devices spanning a decade in my family of 5 (two ipod touch 1st generation, three Ipad 2s, Iphone 5, Iphone 6....etc.)

I can't find a way to put a Classic on a boom box that has a Lightning plug dock, and get it to play music. There are plenty of Lightning male to 30-pin female adapters, but I've only found one (Chinese made, no name) Lightning female to 30-pin male adapter, and while it will charge the iPod from the boom box dock it won't play the music. According to the various forums I've read Apple did something to change the way the music gets to the boom box from the device (Bluetooth maybe?). I've talked to Apple techs and they all just say buy a newer device. But I love my old 160GB Classic. I've got over 60GB of music on there, and they don't make anything now with anywhere near the capacity.

If you have a way to get this to work, I'd love to hear it. I can always plug the Classic into a box with the earphone jack, but then I have to recharge externally. Very annoying.

 

[Midpack]

It's always sad when a business goes under, even more so for one that's been around for longer than I have. But I've been to RS stores for a few minor electronic parts from time to time, and like others I am surprised they lasted this long. Hopefully separated employees land on their feet soon.

 

[Car-Guy]

I still stop by our local Radio Shack once or twice a year. Now I'll admit, it's in a small town of only about 7500 people, but I can't remember ever seeing another customer in the store. I often wondered how they kept the store opened. I guess there goes another business and a couple of jobs for this little town. Population has dropped by about 10% in the past ten years.

 

[savory]

I rarely went into RS. But last week, I was looking for an antennae for my ancient radio/receiver. They showed that they had it online for about $8. So, I called the store and I was not surprised it was not in stock (it has to be a very slow selling item). Going back online, I was going to have it delivered to the store. I was surprised when there was no way to do that. So, I stated another search and found it on Ebay for under $4 and free delivery. RS does/did not seem to consider customer service in a way other retailers do.

Like Midpack, I hope the employees land on their feet. One would think, if a person does lose their job, this at least would be seem like a better time than a few years ago.

 

[imoldernu]

An impossible business model that has no room in today's marketplace.
4000 stores... 20,000 SKU's (individual items-stock keeping units)
In stock stores = 4000 x 20,000 replenishment.
It doesn't work.
That's why Amazon is successful.

 

[Big_Hitter]

Darn! And I was about to build a crystal set.

those were the days weren't they!

 

[Texas Proud]

They mentioned this on a cable channel this morning....

Said that it would not 'go away', but get downsized significantly....


We will see....

But I have not be to a RS in many years... as some have said, there was nothing in there I was interested in.... and the phone battery that I bought cost as much as a new phone... and did not work!!!

 

[FUEGO]

Yep, the Arduino et al are natural follow-ons to much of the stuff RS sold in past decades. But, it's hard to see why customers would go there when no in-store salesperson is likely to be as smart as a group of online users. And available 24-7. With videos.

I wouldn't even think of visiting a RS for something like an arduino or raspberry pi type of device. There are probably a thousand different kits with those boards in them available from Amazon, ebay, and other online retailers. Pick and choose the variety you want. And you can read tons of reviews from actual users. With videos. Our kids play with these things all the time at school (engineering elementary school!) and I've never heard "hey can we run down to Radio Shack to get a component?". I've taught them to go to amazon/ebay first.

Still, with the gripes we all have with our laptops and software, with our smart phones, with our tablets--and much of it demands a hands-on and face-to-face help, it's hard to believe they can't find some way to make a buck. "Here's my Android. Let's talk about what I'd like to do with it. Show me how to . . ."

Our neighborhood RS was replaced with a lowercase radio shack of a different sort. Cricket Wireless. It may have been 10 years ago.

That's where you could theoretically take your phone and ask them to show you how it works. If that doesn't work, take the phone to the Gamestop store nearest you. Virtually guaranteed to find a techy nerd making min wage at one of those.

Come to think of it, the last time I visited RS was to buy a Virgin Mobile prepaid phone with a hefty discount. Customer service was confusing (confused?) and I barely escaped with what I sought.

 

[HFWR]

Most of the Shacks I've been to quit carrying much in the way of components. If/when I need something like that, I go to Fry's.