eevBLAB #7 - Radio Shack Declares Bankruptcy!

[Tandy]

Trademark law is complicated and implemented in different ways in different countries.

Trademarks however are registered for particular classes, there will be trademarks for..
NICE Class 9, Electronic goods. This means actual products that carry the RadioShack name either on the goods or packaging.
Class 35, Retail services, for selling electronic goods as a retail store or catalogue (inc on-line) under the RadioShack name.

The web site you point to appears to be a Radio Enthusiasts site with a forum. They don't appear to be selling goods or producing anything with RadioShack branding on them so would not be infringing on the registered trademarks.

If RadioShack or the new owners run an on-line or mail order catalogue that ships to ZA they are using Class 35 in commerce and their trademark is sound. If they sell RadioShack branded products to ZA either directly or through a distributor then they are using their Class 9 trademark in commerce making it valid.

[Lisbeth]

I would show a picture of my 200 in 1, but I took it apart to build some electronics. 

[allen.gordon]

From what I gather via different sources (Forbes, The Wall Street Journal, etc...) the bankruptcy hearing resulted in a restructuring of the corporation. They are still in business, but downsizing drastically.

The ruling doesn't affect independently-owned franchises.

There are multiple store locations in the Greater New Orleans Area. The one closest to my house is not closing, however, the next closes location IS.

I continue to frequent the liquidation sale and keep scoring on passive components, Skull Candy earbuds and headphones for my teenage son, and other stuff I don't need.

Not only did I buy transistors, diodes, resistors, rectifiers, MANY LED's, and other various components for 70% of the original prices, but the disgruntled employee facing termination upon closing in June keeps throwing random items in the bag without scanning. Yes, KEEPS... As in, yesterday was my 3rd visit...

The Parallax products are lagging in the reduction game to maximize profits, but I still managed to get accelerometers, Basic Stamps, joysticks, and other fun items I'll probably never need for 60% of MSRP.

Also, I only had a $100 bill on me, and the clerk adjusted my final price even further to accommodate me entire selection for $100.07!!!

This is a fun game, and now I have to try to design something using these components for the sake of it!!!

[Tandy]

allen.gordon

Not quite, RadioShack Corporation is in Chapter 11 bankruptcy protection. This means they are required to submit a plan to the bankruptcy court and their creditors can not call in their loans. During this time contracts can be rejected, this means for example they can cancel a 25 year lease agreement with a landlord.

The plan that RadioShack corporation has is basically to sell everything. So far they have sold around about half of their store leases to Standard General and closed the rest. They have sold some international trademarks and operations. Tuesday 12th May they sold the RadioShack Trademark, copyrights, domain names, customer data and contracts to Standard General.

Standard General created a new corporation called General Wireless that will use the RadioShack name to run a new RadioShack with a vastly reduced product range.

So now RadioShack corporation have no stores, no name, no website and no contracts with manufactures etc so can not remain in business. RadioShack corporation will proceed to sell anything else they have left such as warehouses and pay a percentage of the debt they owe to creditors. At that point they will become functionally insolvent so will be bankrupt.

You are correct that the independent franchises are not directly affected. However their franchise contracts have been sold to Standard General meaning that if Standard General assume the contracts or negotiate new contracts with them that they will continue to use the RadioShack name on their stores. If Standard General attempt to impose an unfavourable new contract on the franchisees they may choose to drop the RadioShack name and use a name of their own choosing. One perhaps less obvious way that the independent franchisees will be affected is that the products supplied by the new RadioShack will consist of 1/4 the number of products. The franchisees are not big enough to deal with the manufacturers of most products directly due to large minimum order values. A switch manufacturer for example is not going to supply 100 each of a dozen different switches, they will likely have a minimum order of 5k per item. As a result unless the franchisees find suitable alternative sources a number of product categories will disappear from their range.

[allen.gordon]

  Thanks for that clarification Tandy! Each of the articles I read seemed to lead the readers in different directions with no clear-cut summary!   

Now I know to keep an eye out for the store closest to me to start liquidation sales. They have an impressive inventory of Parallax components that I will fight over this round!   

A side note...   

I attend a leather workshop 2-3 times a month at Tandy Leather Company. The owner of the location I visit claims this chain to be a division of the original Tandy Corporation that was once part of/affiliated with Radio Shack. OR, is this misinformation as well?!? 

[Tandy]

It is true, Tandy was originally a leather goods company that bought the then small RadioShack chain. They expanded it in to the large network of RadioShack stores in the US and Tandy electronics stores elsewhere. As the electronics part of the business became the primary business the leather part was separated from the electronics business and sold. So yes Tandy Leather Company and RadioShack have a shared history.

[allen.gordon]

Thanks for the clarification on Tandy as well, Tandy!