American electronics chain RadioShack has filed for Chapter 11, which is the American system of deferred payment and the first step towards bankruptcy.
RadioShack has been struggling for a while and in recent weeks, it became more and more apparent that it would probably file for bankruptcy. It has been around for nearly 100 years, but will now sell off 2,400 stores and close the remainder.
It has already struck a deal with Sprint, which will acquire and manage some 1,750 stores, and investment company Standard General. Its brand name will remain as Sprint will only transform part of its store space and mainly operate as a shop-in-shop.
No profit for years
RadioShack already wanted to close more than 1,000 stores early 2014, but the move was blocked by other parties. Since then, it was only a matter of time for RadioShack's demise.
Currently, the company employs some 27,500 people, but it has not made a profit since 2011, despite the different attempts to reignite the brand.