Despite waving goodbye to the 1980s in its well-received, self-deprecating 2014 Super Bowl commercial (a must-watch), RadioShack’s struggles have continued in 2014 and the company now appears on the verge of bankruptcy.
Two years prior to releasing the commercial that quickly went viral, RadioShack tried to transform itself from a 20th century electronics store into 21st century mobile phone specialist, but the transition was lost on today’s consumer who can purchase the latest and greatest mobile phone from dozens of big box or online retailers. Recently, RadioShack’s newly retained CFO resigned after a mere seven months on the job, and the company reported a 20% drop in same-store sales during the early summer.
RADIOSHACK TRIED TO TRANSFORM ITSELF FROM A 20TH CENTURY ELECTRONICS STORE INTO 21ST CENTURY MOBILE PHONE SPECIALIST, BUT THE TRANSITION WAS LOST ON TODAY’S CONSUMER
There is some hope that RadioShack’s bankruptcy might lead to a true reorganization instead of a liquidation like other former retailers, such as Circuit City, Borders, Filene’s Basement, and Linens ‘n’ Things, who each filed chapter 11 and then quickly went dark. Earlier this week, one financial analyst suggested that Amazon should purchase RadioShack out of bankruptcy and turn RadioShack stores into a platform to sell Amazon’s products.
Time will tell if Amazon wants to try to salvage RadioShack. In the meantime, there is a real likelihood that RadioShack will be a chapter 11 debtor during the 2014 holiday season.