RadioShack files for Chapter 11; Newton store could close

The RadioShack Corporation filed for Chapter 11 bankruptcy Thursday, and that could mean the Newton location may be among thousands of stores to close.

The company posted a restructuring announcement on its website Thursday.

RadioShack currently has approximately 4,000 company-owned stores in the U.S. — including one on Iowa Speedway Drive in Newton, next to Dollar Tree. The company will sell between 1,500 and 2,400 stores to General Wireless Inc., an affiliate of Standard General L.P., and will close the remaining stores.

Signs posted Monday morning on the Newton storefront read “store closing” and “everything must go.” Calls to store and district management were deferred to Radio Shack Cooperate Media Relations, which directed the Daily News back to the announcement on the company’s website.

The announcement says the company will announce which exact stores will close "in the near future." There is a page of www.radioshackcorporation.com devoted entirely to cooperate restructuring.

Sprint has agreed in principle to open “stores within stores” to sell mobile technology in as many that Standard General takes on.

Discussions are also under way with interested parties to sell all of the company’s remaining assets.

There are 14 stores in Iowa that could be affected by this announcement, including stores in Ankeny, Ottumwa, in the Merle Hay Mall in Des Moines and in the Marshalltown Mall.

There are more than 1,000 dealer franchise RadioShack stores in 25 countries. These stores, along with the stores operated by its Mexican subsidiary, and its Asia operations are not included in the Chapter 11 filing or the agreements announced Thursday, the announcement said.

Contact Jason W. Brooks at 641-792-3121 ext. 6532 or jbrooks@newtondailynews.com.