RadioShack had 5,000 stores and no reason to exist — bankruptcy twice in seven years

RadioShack, founded in 1921, was once the only place in most American towns to buy electronic components, batteries, cables and hobbyist kits. At its peak, it operated over 5,000 stores nationwide, and its brand was synonymous with electronics retail.

But RadioShack failed to adapt to the digital age. As consumer electronics shifted to smartphones and online shopping, the products that drove foot traffic — cables, adapters, batteries — became commodities available cheaper on Amazon. RadioShack tried to pivot to mobile phone sales, but it could not compete with carrier stores and online retailers.

The company filed for Chapter 11 bankruptcy in February 2015, closing over 1,700 stores. A smaller chain emerged but continued to struggle, filing for bankruptcy again in 2022. The case illustrated how a retail format built on product scarcity becomes obsolete when the internet makes every product available everywhere.