back to article Standard General bids to save RadioShack from oblivion

Historic retailer RadioShack, currently under Chapter 11 bankruptcy protection, will learn its fate today, as its assets go up for auction, although its options for survival look distinctly limited. A $145.5m bid from Standard General LP, a hedge fund which is also one of RadioShack’s lenders, could save 9,000 jobs and 1,723 …

  1. Anonymous Coward
    Anonymous Coward

    " from selling a Bentley to selling a Ford to selling a used Vespa.”

    Cerberus have always been a vulture fund, so it's unsurprising to see them lurking around a business on the slab. Indeed I've worked for a business where Cerberus and RBS worked together to make a few million at the expense of the original equity owners.

    But in what parallel universe did the plonkers of Cerberus ever think that a faded and failing high street electrical component retailer with weak footfall and uncompetitive prices was a Bentley? If they ever believed that, then there's a stunning investment opportunity in the UK, called Maplin. C'mon boys, fill your boots!

    1. Peter Gathercole Silver badge

      Re: " from selling a Bentley to selling a Ford to selling a used Vespa.”

      It depends how far back you look.

      Having found a site with archived catalogues (which I posted a link to in a previous story comment), it is quite clear that in the 1930's through to the early 1960's, they had an extensive set of products which would have appealed to anybody interested in shortwave radio or building and repairing things, especially as I suspect that they did most of their business mail-order.

      If I were to pin a point where they started going down hill, I would suggest that it was when they tried to become a general electrical retailer (HiFi, TV) with a physical presence in most large towns (US cities), which saw them expand and have to compete with all the other electrical retailers who were also doing the same thing. They were briefly successful, riding the wave of early home and small business computers, but after that it was all down-hill, IMHO.

      They were not able to make their brands, such as Realistic or Micronta as recognisable as the Japanese companies (like Technics, Sony etc), and a lot of the stuff they sold could be easily recognised as rebranded OEM products, often more expensive than the originals.

      1. Tom 13

        @Peter Gathercole

        I think your point if exceedingly pedantic in as much as that particular vulture fund is HIGHLY unlikely to have purchased shares of Radio Shack back in the days when it was a beloved store.

      2. Vic

        Re: " from selling a Bentley to selling a Ford to selling a used Vespa.”

        They were not able to make their brands, such as Realistic or Micronta as recognisable as the Japanese companies (like Technics, Sony etc)

        I disagree. At the time, Realistic was a very recognisable brand.

        It just wasn't a very desirable one...

        Vic.

  2. Stoneshop
    FAIL

    " “We’ve gone from selling a Bentley to selling a Ford to selling a used Vespa.”

    Without adjusting the pricing.

  3. 404

    Radio Shack was useful at one time

    I'm not sure what they are about any more - had they remained true to their roots, they would be selling Edison, Pi, and Arduino boards like an actual electronics supply store. Seems to be just another phone store with a few electronic bits here and there.

    I do miss the old Radio Shack, going the way of TV repair shops of old.

    1. Anonymous Coward
      Anonymous Coward

      This is a rich time for Makers Re: Radio Shack was useful at one time

      They should also be hosting makers' meetups and conducting classes on soldering technique or circuit design and selling time on 3D printers and running monthly robotics contests and anything else they can think of to make their locations a hub of activity instead of a mere retail space.

      I don't remember a time* when more people were interested in (a) making stuff of all kinds, (b) learning from the more experienced makers and (c) sharing what they've done. If Radio Shack couldn't thrive in an environment like that, there's no hope for them.

      *I'm not quite old enough to remember when people built their own radios and graduated to assembling a stereo amplifier

    2. Dan Paul

      Re: Radio Shack was useful at one time (And still is)

      You obviously have not been in their stores in several years as you would have noticed that they are indeed selling Arduino & PI and lots of other related electronic doodads. And they have been available for at least two years.

      You only have to look here:

      http://www.radioshack.com/digital-ics-and-microcontrollers?prefn1=brand&prefv1=Arduino

      1. 404

        Re: Radio Shack was useful at one time (And still is)

        I can buy pretty much anything online - these items are not carried in-store, I was there last Thursday.

        Have you noted even Staples is offering items in their weekly circular that are available online-only?

        <meanwhile, back to configuring a home Pocketmine server on a Raspi2>

        1. Dan Paul

          Re: Radio Shack was useful at one time (And still is)

          They were carried in my two stores in Niagara Falls NY, IN STOCK, ON THE SHELF!

      2. JeffyPoooh
        Pint

        Re: Radio Shack was useful at one time (And still is)

        @Dan Paul

        Arduino at RS: Only about 8x the going eBay prices.

        1. Dan Paul

          Re: Radio Shack was useful at one time (And still is)

          SO, But still there and in the store. Look, whether you like it or not all the whining about not carrying Arduino at the Shack is not true. YOU go buy it from the "lowest" price vendor online, YOU can be the guinea pig for that stall in Shenzen that takes 10 weeks to ship the knockoff parts. All the while your credit card info is traded 6 ways to Sunday. Lowest available price is not the only factor when you NEED something after 5PM on a weekend.

          1. 404

            Re: Radio Shack was useful at one time (And still is)

            Canakit Raspberry Pi 2 (quad core ARM, 1GB ram SoC), PS, wireless N dongle, case, heatsink, HDMI cable, 8GB sd card preloaded with NOOBS, Raspbian, Ubuntu, OpenELEC, etc. , etc $69 from Amazon.

            Radio Shack as of yesterday (two stores) Arduino Mega 2560 REV3 (equiv to Raspi A board) $51.99 - order only.. OR the China Arduino knockoff version w/built-in wifi ordered in for $74.99. But I can have an iPhone today with a selection of cases

            Be honest - there was a time I wanted to live at Radio Shack due to all the 'parts' could make stuff with, didn't matter what, as long as it was useful - now it's just another trinket store.

          2. Stoneshop
            FAIL

            Re: Radio Shack was useful at one time (And still is)

            YOU go buy it from the "lowest" price vendor online, YOU can be the guinea pig for that stall in Shenzen that takes 10 weeks to ship the knockoff parts.

            You can also buy genuine stuff online, for prices that DON'T include having to pay store rent and spotty-faced nitwit salesdroid salaries, and often not even shipping if you buy an Arduino and a half, maybe two.

            Lowest available price is not the only factor when you NEED something after 5PM on a weekend.

            After 5PM on a weekend, stores tend to be closed. So if you NEED something then, you're shit out of luck. AND you have mismanaged your junkpileparts cupboard.

        2. Stoneshop
          FAIL

          Math fail

          Arduino at RS: Only about 8x the going eBay prices

          EUR.22 for a genuine Uno against just under EUR.4 for a clone. Yes, a substantial difference, but not the 8x you state.

      3. Zarno

        Re: Radio Shack was useful at one time (And still is)

        The one thing I noticed, having perused their once well-stocked shelves since back before the dawn of blue LED's, (early 90's), is that they slowly raised prices and dropped selection.

        A disc cap assortment of around a hundred pieces was around $5 (going on foggy childhood memory here..), chump change, but eventually price stayed the same and quantity went down.

        Soon the "RC toy" craze went full nards to the wall, then the cellular craze started, and then the MP3 players, overpriced computer accessories ($35 USB cables...), and other "OMG AWESOME!!!" stuff creeped in.

        Since a store is only so big, what once was 4 aisles of components, turned to 4 half-aisles, then to 2 halfs, then to one half aisle, to accommodate. Entire wall of cellphone cases, kiosks of Verizon, Sprint, Etc phones, walls of cables, bluetooth speaker gizmos...

        The arduino/pi/beaglebone/etc came in too late, at too high a price point, for most to buy them. Those who knew about them bought online, and those who didn't were put-off by the price.

        The 1000-in-one electronics kits never really dropped in price with the reduction in component costs, and were always on the expensive side to begin with.

        They were great though, I have many fond memories of messing around with mine and driving the parents nutty with bloops, squeals, bluarps, and the occasional bit of magic smoke when I biased a transistor too hot.

        Add to it that the old white-beards and EE students were no longer working there, and you got "I don't know what you mean?" when you asked if they had decoupling caps or any new microcontrollers in stock.

        I'm rambling... :(

        Oh RadioShack, we are saddened by your transformation into CellHut...

  4. Gary Lloyd 1

    Tandy Goes Bandy

    A long long time ago in a retail universe far far removed from the one we currently reside in I used to be the manager for one of its stores. Prior to that a loyal customer for everything from Batteries to Ghetto Blasters via all kinds of components.

    Such a shame that it just didn't move with the times. Goodbye Radio Shack/Tandy.

    I fear that the force is not strong with this one.

    1. chivo243 Silver badge

      Re: Tandy Goes Bandy

      The time for Radio Shack has past, sad to see them go. It's been 10 years since I entered a Radio Shack, and even then it looked like they had been left behind by the times. They didn't keep up with the market.

    2. Florida1920

      Re: Tandy Goes Bandy

      I've posted about working p/t during the holidays at a RS in 1984. Now I've moved far away and only just found out that not only is the RS gone -- the whole mall is gone! Capitalism is a cruel and unforgiving master.

  5. Doctor Syntax Silver badge

    "In February, the company issued a release, which said:

    ...

    To effectuate this transaction..."

    Remedial English lessons needed..

    1. John Brown (no body) Silver badge
      Thumb Up

      I suspect the press release author was taught English at the George "Dubya" Bush school of American "english" ;-)

  6. Mage Silver badge

    Next

    Maplin.

    They have lost the plot. Selling rubbish tools, boyz toys, poor security gear and disco stuff won't save them.

    1. Steve 114
      Thumb Up

      Re: Next

      Maplin's the only place I can go within driving/parking distance to get stuff now. Nice people there, but too much in the basement so mail-order is almost as fast (and is efficient). C'mon. what's the answer? RS seems to do OK, but is there a retail option?

      1. Anonymous Coward
        Anonymous Coward

        Re: Next

        "but is there a <high street> retail option?"

        Not for hobby electronics. The fundamental problem is that mail order has always been cheaper and more efficient than a physical retail operation. This is made worse in the UK because a physical retailer expects to be loaded up with an expensive lease, laden with "upward only" rent reviews, and worse still, will have to pay extortionate business rates for no say and virtually no services from the council that pockets those rates. Those two things alone probably need a minimum 50% uplift over a mail order price. A recent PWC analysis concluded that retailers pay taxes equivalent to 59% of their UK profits, primarily driven by business rates, and the overall burden of taxes on retailers has increased by 65% since 2005. Funnily enough you often hear local and national politicians prattling on about the sad decline of the high street, yet they never mention their part in its downfall.

        Factor in modest footfall for specialist stores in even quite large towns, and the maths can rarely work. Even if they've shrunk the business to the few profitable sites, they'll then find they've lost important economies of scale in procurement, brand, and overheads, so cure a repeat shrinking cycle. Because the time insensitive customers will find it not just cheaper, but easier to buy from a good online retailer, it seems unlikely that specialist chain retailers can survive outside of a few big city sites.

        I suggest somebody writes to the National Trust and asks them to buy a Maplin store when they go bust, with a view to preserving it in its full glory. Against the likelihood that the NT will refuse, those who haven't been in Maplin of late should perhaps take the opportunity to revisit the place while its still there.

        1. TheOtherHobbes

          Re: Next

          Yep. The Maker Nerdgasm market isn't anywhere close to big enough to keep a big retail chain going.

          AdaFruit and SparkFun are doing fine at mail order, and they have more technical smarts too.

          How many people need an Arduino board right this second - for values that don't include "Actually next day is fine, thanks."

          Electronic clubs would help, but not enough, I think. The interest among most of the population just isn't there. It's nowhere close to the levels of the 70s/80s when electronic DIY was serious bizness, and you could make real money from a store selling 555s/Z80s/74xx to spotty virgin teens/middle-aged men.

        2. david bates

          Re: Next

          But thats just how Maplin USED to be...a few fairly big stores that you travelled to, or mail ordered from the catalogue. Then they opened everywhere and started specialising in tat. Why would I go to Maplin to buy a folding ladder or a window cleaning set for heavens sake?

      2. Stoneshop

        Re: Next

        RS seems to do OK, but is there a retail option?

        The cinch with electronic parts retail is the selection of stuff you would need to carry beyond resistors, caps, generic semiconductors, inductors, transformers, switches, etcetera to even start to compete with mailorder. Because when for some project there's just one item I can only get online, I'll order the entire lot in one go.

    2. dogged

      Re: Next

      I like Maplins. I agree some of the stock is crappy and they're edging into turf already held by Halfords on quite a lot of the motoring gear (although Maplins are much cheaper and Halfords are bastards).

      I also agree with a poster above who stated that the way to success would be to do electronics clubs, make your own drone weekends, ATX Case modding (Dremel 101!)...

      All these places used to be great because they had public support. Now, thanks to Amazon, Scan and (in the US) Newegg, that support has gone and the retailers need to build it back up.

      1. Dan Paul

        Re: Next (No retailers left!)

        Perhaps if some of you had spent some money there instead of blowing it all online they might still be around. There is some use to a bricks and mortar storefront. Don't whine now, its too late.

        Just wait, FOOD is next.

        1. Stoneshop

          Re: Next (No retailers left!)

          What's the advantage of a bricks and mortar store when you have to travel there (takes time and money too) during opening hours while they may be out of stock on the item you want? No way to check whether someone is walking out with the last item as you're parking the car. Or it's a rare item that needs to be ordered from their central warehouse anyway.

          If I order online it takes maybe 24 hrs for the item to arrive at my door, and I get confirmation it's been sent.

          1. Dan Paul

            Re: Next (No retailers left!)

            Because there is something very satisfying about having it in your hand now when you need it instead of it being backordered. Never had any kids, did you? That special cable they needed isn't available in time for Christmas? Too bad, it used to be at the Shack but no more.

            The next "online" thing will be food. Just wait until the local food store goes tit's up when you need milk or formula or diapers. This is why you split purchases between bricks and mortar and online.

            Price is not the only consideration.

            1. Stoneshop
              FAIL

              Re: Next (No retailers left!)

              Because there is something very satisfying about having it in your hand now when you need it instead of it being backordered.

              If something is backordered at webshop[0], I just hit webshop[1..n] until I find one that has the item in stock (and doesn't take three weeks to deliver from Bumfuck, Arizona by stage coach). If something is backordered at brickandmortarshop[0] (and you're lucky if there's a brickandmortarshop[1] in town that can fill the gaps, provided there's one anyway) you've wasted time and money.

              And if there's stuff I might conceivably need Right Sodding Now I make sure my local stock can satisfy that.

            2. Stoneshop
              FAIL

              Re: Next (No retailers left!)

              The next "online" thing will be food.

              Bollocks. The customer base for food is way larger than for electronics parts, and people DO drop into a supermarket after work for dinner ingredients instead of thinking a week ahead about what they're going to eat. Where they can select a cauliflower that's just the right size, pomegranates with just the right ripeness and maybe a bottle of juice that's marked down because it's close to its "best by" date, but you're going to consume it tonight anyway.

              Oh wait, you're living in the US where cooking for dinner involves deep freezers and microwaves. Yeah, I can see that being an online matter.

      2. Expectingtheworst

        Re: Next

        Used to make many electronic gadgets from amps in the 50s to computer bits for BBC B in the 80s to PA related bits in the 90s.

        However the cost of the bits became more expensive than the retail items. It then was only worth it if you needed a specialist item. Luckily recently when I need a width controller for a PA setup - stereo too wide and mono bland so i need a narrow stereo sound field - I had enough components in my tray rack to build it.

        I would have been pushed to get the bits from Maplin as when I tried to get an 8W bridge rectifier for my daughter's shower unit, which they said was in stock, my daughter who went to pick the ordered part up was given a bag with an 8 pin CMOS IC in it. When I took it back it took the third person I spoke to to know anything about components.

        Liked their 100W MOSFET DIY modules

        1. Stoneshop
          FAIL

          Re: Next

          I would have been pushed to get the bits from Maplin as when I tried to get an 8W bridge rectifier for my daughter's shower unit, which they said was in stock, my daughter who went to pick the ordered part up was given a bag with an 8 pin CMOS IC in it.

          You order by part number, not by description.

  7. x 7

    Its not the first time they've gone bust though......for those of you with a memory, the last time they went crash they sold all their UK stores to Carphone Warehouse and so kick-started the mobile phoneshop invasion of the high street. Must have been around 15 years ago

  8. lobsterpasties

    FFS.

    Who is going to send me batteries on my birthday now ?

  9. x 7

    for those of you wanting electronic bits, try CPC - or its parent, Farnell

    http://cpc.farnell.com/

    http://uk.farnell.com/

    one is in Preston, the other Leeds, both do mail order

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