RadioShack files for bankruptcy

RadioShack, which filed for bankruptcy last week, will shut down more than 33 percent of its stores including one in Fallon, reports the company on its website.

Sixteen stores in Nevada are scheduled to close in a three-tier process that should be completed by March 31. Eight RadioShack stores in Northern Nevada are among 16 statewide on a proposed closure list as part the company’s Chapter 11 bankruptcy.

One week ago, a federal judge signed off on a plan that will allow RadioShack to begin sales at the stores targeted for closure. According to the Delaware court filing, RadioShack representatives said the company’s debt of $1.38 billion was greater than its $1.2 billion in assets.

Numerous sources report RadioShack has been unprofitable for 11 consecutive quarters, accumulating $936 million in losses during that time.

Founded in 1921, RadioShack filed for Chapter 11 bankruptcy on Thursday in Wilmington, Del.

In addition to the store in Fallon on 2155 W. Williams Ave., four are in Reno, two in Carson City and one in Incline Village. Seven stores in Las Vegas and one in Henderson are also closing.

The Fallon store has been a tenant in the Stillwater Plaza since the late 1990s. Before that, the store operated as Harrigan Electronics in the Frontier Shopping Center. The store is listed in the third phase for closures.

RadioShack currently has about 4,000 company-owned stores in the U.S. Its more than 1,000 dealer franchise stores in 25 countries, the stores operated by its Mexican subsidiary and its Asia operations are not included in the Chapter 11 filing or the agreements announced last week.

Closures for the company will come in three waves, reported RadioShack. The first wave of closures affecting 162 stores should be completed by Tuesday. By the end of the month, the second wave will shutter 986 stores and the final group of 636 stores, which includes Fallon, should be completed by the end of March.