A&G Realty to dispose of 1,100 RadioShack stores

Following RadioShack’s surprise announcement that it will close 1,100 stores in an attempt to staunch the flow of red ink, the company has retained Melville, N.Y.-based A&G Realty Partners to manage the disposition.

“In the coming weeks we’ll be working with our landlords to find an efficient and cost-effective means to exit these unprofitable locations, and as such, we’ve engaged A&G Realty to assist us in this process,” said John W. Feray, RadioShack’s CFO, during a March 4 earnings conference call.

What will A&G Realty do? “We expect this may involve a negotiated lease termination payment in some cases,” continued Feray.

While lease termination payments may require relatively large cash outlays, Feray went on to say that those costs would be more than offset by cash generated from the liquidation of the inventory in those stores when they closed.

“Overall, we expect this to provide a benefit to liquidity,” Feray said.

While company officials speaking on the earnings conference call expressed optimism that the store closures and other cost containment efforts would turn the company around, many in the media weren’t buying it.

The headline in The Atlantic magazine read: “RadioShack is Doomed.” The Economist magazine’s blog trumpeted: “Dead brand walking.” The headline in Forbes said: “Will 1,100 Stores Closures Save RadioShack? Probably Not.”

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