Former Dell Inc. executive Ron Garriques will lead RadioShack, the New York hedge fund that will operate more than 1,700 of the retailer’s stores said Thursday.
Garriques was head of the communications and consumer divisions at Austin-based Dell and previously held posts at Motorola Inc. and Bell Labs.
Earlier this week, a bankruptcy judge approved the sale of more than 1,740 RadioShack stores to hedge fund Standard General LP, preserving some 7,500 jobs.
On Wednesday, RadioShack CEO Joseph Magnacca announced his resignation. Magnacca, who was hired from Walgreens, had been CEO for about 2 years.
RadioShack’s bankruptcy plan calls for Sprint, the No. 3 U.S. wireless carrier, to operate dedicated “store within a store” shops in most of the locations acquired by acquired by General Wireless, a newly formed affiliate of Standard General LP. RadioShack’s headquarters will remain in Fort Worth.
“This has admittedly been a difficult time for all RadioShack supporters. That having been said, this transaction is an important milestone in this storied company’s history,” said Soo Kim, Managing Partner of Standard General, the majority shareholder of General Wireless, in a news release. “It has allowed the company to shed stifling debts and unprofitable business lines. The new company has now been reorganized around a solid retail franchise underpinned by a world-class mobility carrier, Sprint Corp.”
Kim said the new General Wireless-led locations will serve more than 1,200 communities across the country.
“We look forward to partnering with the company’s 7,500 associates, its landlords, and with Sprint to rebuild a great American company,” he said.
The ruling by Judge Brendan Shannon in Wilmington, Delaware, comes after a court hearing that stretched over four days.
Shannon said Standard General’s bid, valued at about $160 million, was clearly “economically superior” to an alternative liquidation proposal by another bidding group, even before accounting for the preservation of jobs and “a century-old American retailing icon.”
The chain has already shrunk substantially. Roughly 2,000 RadioShack stores have closed or are closing. Grapevine-based GameStop Corp. won court approval to take over 163 RadioShack locations.
The rest of RadioShack Corp. remains in bankruptcy court with creditors battling over the remaining assets.
Standard General is represented by Debevoise & Plimpton LLP and DLA Piper.
Sprint is represented by McGuireWoods LLP, and its financial advisor is GLC Advisors & Co. LLC. – Associated Press contributed to this report.
Fort Worth RadioShack locations that will remain open:
• Eastchase Market
1540 Eastchase Parkway 76120
• Fossil Creek Plaza
4398 Western Center Blvd. 76137
• 3901 E. Belknap 76111
• 3401 Alta Mesa 76133
• La Gran Plaza
4200 South Freeway 76115
• Fiesta Plaza
201 NE 28th St. 76164
Source: Bankruptcy records