The Radio Shack near the Governor’s Square Mall off of Apalachee Parkway is closing. The company, Radio Shack has been around since 1921. Tallahassee has lost one of its three Radio Shacks due to the companies nationwide reconstruction of their stores.
On February 5th, 2015, Radio Shack filed for reorganization under chapter 11 of the U.S. bankruptcy code, according to the company website.
"These steps are the culmination of a thorough process intended to drive maximum value for our stakeholders," CEO Joe Magnacca said.
New York hedge fund, Standard General and Litespeed Management provided the company with $120 million to restructure its existing debt.
The company reports, General Wireless has agreed to acquire between 1,500 and 2,400 domestic Radio Shack stores.
Jasmine Wilson, a Tallahassee resident has always loved technology and electronics.
“Ever since I was younger I have shopped at radio shack.” Wilson said.
“Once places like Best Buy and Wal-Mart started becoming more prevalent in the community, I knew smaller businesses like Radio Shack would fail. It was only a matter of time.” Wilson said.
On the contrary, Frances Nerius, a senior education student feels that Radio Shack is taking up space for stores that consumers actually want.
“Radio Shack doesn’t have deals that appeal to the average college student.” Nerius said.
“I know that I can go to Wal-Mart and get the same batteries or headphones for a cheaper price.”
Toya Bunt, a Tallahassee resident thinks the company went wrong when they didn’t adapt to the new generation.
“Paper coupons just don’t cut it anymore. I never saw a commercial or an app advertising that they were even competitive in business.” Bunt said.
For existing customers, Radio Shack credit cards will remain active as well as any active warranties.
For general questions about Radio Shack’s reorganization, visit Radioshackconstruction.com