LINKEDINCOMMENTMORE

RadioShack Corp., the bankrupt consumer-electronics chain, on Monday won interim court approval of a loan to fund store closings as it seeks to cut the number of locations roughly in half.

RadioShack said it could potentially close 56 stores in Michigan — including 26 in the Metro Detroit area — according to a filing on its website.

The retailer agreed to cap its temporary borrowing at $10 million, Greg Gordon, a lawyer for RadioShack, told U.S. Bankruptcy Judge Brendan Shannon on Monday in Wilmington, Del. As many as 2,100 of the company’s more-than 4,000 stores are to be closed under a deal with liquidators.

“These steps are the culmination of a thorough process intended to drive maximum value for our stakeholders,” CEO Joe Magnacca said in a statement last week.

Last Friday, Shannon allowed RadioShack to begin store-closing sales.

The company filed for bankruptcy a day earlier, saying it had an agreement to sell 1,500 to 2,400 of its locations to a unit of Standard General LP, its biggest shareholder.

Standard General has a deal with wireless carrier Sprint Corp. to set up stores-within-stores at as many as 1,750 of Radio Shack’s locations.

RadioShack, which is based in Fort Worth, Texas, filed for bankruptcy last week after trying to keep up with competitiors such as Amazon.com Inc. and Wal-Mart Stores Inc. while at the same time coping with an industrywide slump in demand for consumer electronics.

Potential closures

Briarwood Mall, Ann Arbor

4960 Schaefer, Dearborn

35354 E. Michigan Ave., Wayne

35533 Ford Road, Westland

4179 Baldwin Road, Auburn Hills

41821 Garfield, Clinton Township

3050 Union Lake Road, Commerce

47591 Van Dyke, Utica

8896 W. 8 Mile, Ferndale

16201 Ford Road, Dearborn

32436 Grand River Ave., Farmington

26350 Ford Road, Dearborn Heights

28684 Telegraph, Southfield

Sterling Ponds, Sterling Heights

604 W. 14 Mile, Troy

2121 N Monroe St., Monroe

3617 East Grand River, Howell

29480 7 Mile, Livonia

26122 Greenfield, Oak Park

3552 Pine Grove, Port Huron

67342 Main, Richmond

1215 S. Livernois, Rochester Hills

2516 S. Adams, Rochester

1347 W. Eight Mile, Detroit

4501 Woodward, Detroit

28755 S. Rochester Road, Rochester Hills

LINKEDINCOMMENTMORE
Read or Share this story: http://detne.ws/1DVhkbI