A former Boston start-up is on the verge of either being wound-up or being merged out of existence. RadioShack, the once ubiquitous DIY electronics store has been teetering on the edge of bankruptcy for the last year, appears to be taking the final plunge, with losses in the last four years approaching $1 billion and the New York Stock Exchange delisting their shares.
Rumors have suggested they may be purchased by Sprint or that Amazon may be interested in some of their stores. However, the company, as it existed for most of the last five decades, has ceased to function, victim to a changing market and miscues by management.Â
When deciding to close or sell a business, sometimes the decision is “easy,” in that the market or your creditors may force you into bankruptcy or your position becomes so precarious that you have little choice.
Other times, it may be more discretionary. You may have begun and led the growth of your business, and you may be ready to move on to a new line of work or to enjoy the fruits of your hard work.
No matter the reason, selling or dissolving a business is a complex financial and legal transaction, even if you are not threatened with a bankruptcy proceeding. Careful discussions with your attorney or legal team are important. Depending on your market, you may not want it known that you are leaving the business prior to a deal being struck and you will need the highest-level of discretion from your team.
The more orderly the transition, the better for everyone. Your creditors, business partners and employees will have greater confidence, and you are likely to receive a better price than if a crisis triggers the deal and it is perceived as a fire sale.
Bloomberg.com, “Inside RadioShackâs Slow-Motion Collapse,” Joshua Brustein, February 2, 2015