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Shares of RadioShack the trouble retailer will be deleted from the New York Stock Exchange. RadioShack has struggled with weak sales rendering it unprofitable. The company based in Texas warned in 2014 that it might have to seek bankruptcy protection. Its CEO warned recently that it might not find a long-term method to remain afloat.
This in turn hit its share price hard. The NYSE requires all companies meet a certain threshold of market capitalization to remain on its exchange.
According to a Monday press release, the NYSE was planning to delist the struggling electronics retailer and suspend the trading of shares because RadioShack was not planning to submit a plan that would address the issue.
Sprint Corp and Amazon.com are considering the acquisition of some stores owned or operated by RadioShack after the electronics retailer files bankruptcy, said people aware of the situation but who wanted to remain anonymous.
Amazon is considering using the stores to showcase hardware and as possible drop-off or pickup centers for customers who purchase online.
RadioShack and Sprint have held talks about the co-branding of some stores, while the remainder of the stores would be shuttered.
Meanwhile the NYSE said its own regulatory arm was preparing to delist the shares of RadioShack and suspend trading immediately.
Another bidder could possibly emerge to purchase RadioShack and continue its operation. The retailer has been in business for 94 years.
The delisting process started on NYSE on Monday as RadioShack was not submitting a business plan that would address not being compliant with the listing standards of the NYSE.
Last September RadioShack had warned it could face bankruptcy if ongoing talks with shareholders and lenders about a possible restructuring or sale fell through.
In October, the company said it was seeking to convert a $120 million loan, given by its investors including Litespeed Management and Standard General, into equity in the upcoming months.
On Monday, RadioShack shares were at 24 cents.
