In February, RadioShack, under crumbling sales and rising debts, filed for federal bankruptcy protection. Some conceded that the electronics store had too many locations, too small of a typical store and could not compete against online retailers that offered low-costs and convenience. Now, the nearly 100-year-old brand is trying to reemerge in a slightly new form according to an April 5, 2015 article on NYTimes.com.

A hedge fund, Standard General, is working to revive the store in a new way. The fund wants to make the store the go-to electronics store in small to medium-sized cities. They will close stores that are not profitable. While this means a reduction of about 4,000 to about 1,700 (and maybe more) stores, this move will save 7,500 jobs compared to a complete liquidation. RadioShack’s largest creditor, which owns the brand’s name, had originally pushed for liquidation to repay debts and to close the company.

How will RadioShack choose which stores to keep open? Firstly, RadioShack’s in upscale malls will close. While one might think a mall offers the store a convenient location and plenty of shoppers, the fact is that the rent is high there and in such a mall, there is a lot of competition. Also, rent is high for stores in areas like Manhattan and competition is fierce there as well. The fund will close 27 of Manhattan’s 30 stores. Stores in communities of 5,000 to 100,000 residents will stay open in most cases. These stores are the stores people rely on the most and that have the least competition.

RadioShack will also shrink its product selection. Some products did not sell well. For example, carriers did not give RadioShack a good deal for selling phones. However, that may change. These 1,700 stores will be co-branded as Sprint stores. The Sprint stores will be located within the RadioShack and will run somewhat independently. They are expected to boost the store’s appeal. RadioShack can sell the cell phone accessories that consumers need as well. Sprint will increase its number of stores by 50% and will pay RadioShack a sales commission. RadioShack is open to having other companies have boutiques in their stores, too. It is hoped that this transformation will keep RadioShack open for business.

If you are contemplating filing bankruptcy, then you should weigh your options with an attorney. Jayson Lutzky is a Bronx, New York lawyer handling personal bankruptcies. He has over 31 years of legal experience and offers free in-person consultations. Call 718-514-6619 to set up an appointment. Visit www.MyNewYorkCityLawyer.com to learn more about Mr. Lutzky.