Beleaguered electronics retailer inches closer to reorganization
RadioShack is entering the latest chapter in its ongoing financial saga — but on a positive note.
On Thursday, RadioShack’s Chapter 11 bankruptcy plan cleared a preliminary court review. This decision enables the retailer to move forward with its strategy to reorganize, and save a small portion of the company, according to Dealerscope.
As originally reported by the Wall Street Journal, the reorganized company will be composed of online operations, a major network of independent dealers, and somewhere between “zero and 28” company-owned brick-and-mortar retail locations. Yet, this plan still hinges on the outcome of a lawsuit that RadioShack filed against Sprint back in June.
RadioShack filed for bankruptcy protection in March, its second filing in just over two years. To date, less than 30 company-owned stores remain in operation — down from more than 4,400 prior to its first bankruptcy filing in 2015.
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Howard Hughes CEO re-ups for 10 years
David Weinreb, who took The Howard Hughes Corporation public, will now take the company well into the next decade.
The Dallas-based company announced it has entered into a new employment agreement with Weinreb that runs through 2027. As part of the deal, Weinreb completed the acquisition of nearly two million stock warrants in the company at a cost of $50 million.
Since taking the helm in 2011, the former longtime CEO of TPMC Realty Corp. helped Howard Hughes deliver a shareholder return of 207% versus 102% for the S&P 500, according to the company.
“I am very pleased that HHC has secured David’s visionary leadership through the coming decade. David’s proven track record over the last six years is a testament to [his] leadership and ability to assemble a world-class team,” said Chairman William Ackman in a press release.
Target lowers ‘thousands’ of prices
The price wars among the nation’s leading retailers has taken a new turn just ahead of the critical holiday selling season.
On Friday, Target revealed in a blog post on its website that it had lowered prices on “thousands” of items, from cereal and paper towels to baby formula, razors, bath tissue and more. The discounter said the move would help end shoppers’ uncertainty over the timing of discounts on certain products, and make for “more consistent savings.”
In line with the price cuts, Target has eliminated more than two-thirds of its price and offer call-outs. But the chain emphasized it is not ditching promotions entirely. Instead, it wants to make sure it offers only its “most compelling sales — when it makes the most sense for our guests.”
“We want our guests to feel a sense of satisfaction every time they shop at Target,” Mark Tritton, Target’s executive VP and chief merchandising officer said in the blog. “Part of that is removing the guesswork to ensure they feel confident they’re getting a great, low price every day. We’ve spent months looking at our entire assortment, with a focus on offering the right price every day and simplifying our marketing to make great, low prices easy to spot, all while maintaining sales we know are meaningful to guests.”
In its post, Target did not specify the percentage of the price cuts.