Posted 05/13/2015 at 11:33 AM
Posted 2 years ago
The winding saga that has become the bankruptcy of the electronic retailer Radio Shack entered another phase on Tuesday.
In a Radio Shack auction report from Adrienne Walker of Mintz, Levin, Cohn, Glovsky & Pompeo, an auction being held for the company’s assets was set to resume Tuesday in New York City at the Jones Day law firm.
Part of those assets up for the bidding include the company’s name and all of its customer data. The opening bid was fixed at $15 million. Walker was present on behalf of the independent franchisees and dealers affiliated with the company. The high bid was entered by the Standard General hedge fund, who had acquired 1,740 properties from Radio Shack last month. This move has led the franchisees to retain Walker to find out if a subsequent sale of Radio Shack assets would threaten their right to use the trademark and if that sale would violate the current privacy policies in place.
These concerns are also shared by other interested parties following the proceedings, namely Apple who filed motions with the U.S. Bankruptcy Court located in Wilmington, Delaware last week citing that their established reseller contract with Radio Shack provides protection of all customers who purchased Apple products from their stores. In addition, the Attorney General of Texas, Ken Paxton has directed his office to lodge their protests over the sale. Standard General, via their affiliate company General Wireless, already owns part of the business thanks to Radio Shack gaining court approval to sell that off in March. This current Bankruptcy Court decision over the name will be made by Judge Brendan Shannon.