RadioShack Is Shutting 175 California Stores- But This Is Not The End

RadioShack is shutting down 175 stores in California, after it filed for Chapter 11 bankruptcy protection Thursday. The company has about 4,000 stores in the U.S.

According to reports RadioShack has agreed to sell 1,500 to 2,400 locations to General Wireless - an affiliate of the hedge fund Standard General. The same entity had helped electronics chain with a loan to avert bankruptcy last year.

RadioShack said that Sprint is now going to set up a "store within a store" presence in up to 1,750 of the stores that General Wireless is buying. The Sprint stores that will be taking over RadioShack locations will sell parts, accessories and other miscellaneous goods under the RadioShack brand.

However, the filings of bankruptcy wont affect its outlets in Asia where the locations are run by a Mexican subsidiary.

The 94-year-old retailer is expected to rise again, or at the very least it can live on in another form i.e., online retailer or branded goods.

"So this isn't really the end for RadioShack and there's still a chance that RadioShack can reinvent itself, again," Forbes wrote.