RadioShack went from 8,000 stores to two bankruptcies by losing its identity

RadioShack was founded in Boston in 1921 as a mail-order radio parts supplier and grew into one of America's most ubiquitous retailers, with over 8,000 stores at its peak in 1999. It was the place hobbyists went for resistors, cables, batteries and electronics components, and the place everyone went for phone accessories and TV antennas. Its stock traded at $24.33 in 2000, and it seemed impossible to fail: the brand was everywhere, and everyone had a reason to walk into one at least once a year.

The internet killed that model. Amazon and big-box retailers sold electronics cheaper, and the hobbyist component business was too small to sustain 8,000 stores. RadioShack tried everything: a 'Fix 1500' program in 2004 that put 1,500 store managers on notice and fired 1,734 in six months (abandoned in a year); PointMobl concept stores in 2008 that hid the RadioShack name; and a disastrous post-bankruptcy Sprint partnership: Sprint became co-tenant at 1,435 locations, then allegedly used sales data to open competing stores nearby, destroying nearly 6,000 RadioShack jobs.

RadioShack filed for Chapter 11 for the first time on February 5, 2015. General Wireless bought 1,743 locations out of bankruptcy for $26.2 million, but the Sprint partnership failed and the company filed for Chapter 11 again on March 8, 2017. The brand and intellectual property were sold at auction to Kensington Capital Holdings for $15 million. RadioShack now exists as an e-commerce site and a network of about 400 independent dealers — a skeleton of the retailer that once had its own zip code in every mall in America.