Posted 05/21/2015 at 8:28 AM
Posted 2 years ago
One of the side effects when a company files for bankruptcy is that at times, their creditors get left out in the cold.
And it looks as if the recent filing by RadioShack will be doing the same thing.
According to recent reports covering the electronic retailer giant’s open database of creditors, RadioShack still owes each of them money.
Their outstanding bills are in the thousands of dollars.
The majority of these creditors are hardware companies that sold directly to RadioShack in the past, such as 3D printer company Afinia and Parallax.
It seems more than likely that they won’t be getting restitution as the auction continues.
To date, RadioShack has only paid off parts of its debt to much smaller entities.
There is one exception: Apple, Inc.
Thanks to pre-existing conditions in their contract, they were able to get the $3.3 million dollars owed to them in spite of the circumstances.
It does serve as a stark reminder to hardware companies to be leery of direct contracts with major retailers since there seems to be no real financial protection for them in situations like these.