Log in or register
Share on LinkedInShare on LinkedIn

ARTICLE · 09 FEBRUARY 2015

RadioShack Pulls The Plug

Fox Rothschild LLP
Fox Rothschild LLP
Contributor
Explore more from Fox Rothschild LLP

In an unsurprising move, RadioShack has become the latest retailer to file for relief under Chapter 11 of the Bankruptcy Code. RadioShack filed on February 5, 2015 along with 17 of its affiliates.

United StatesInsolvency/Bankruptcy/Re-Structuring
L. John Bird
L. John Bird
Author LinkedIn connections

In an unsurprising move, RadioShack has become the latest retailer to file for relief under Chapter 11 of the Bankruptcy Code. RadioShack filed on February 5, 2015 along with 17 of its affiliates. The cases are jointly administered under Case Number 15-10197 and presided over by Judge Shannon. The emergency first day motion was held on February 6, 2015, and a further first day hearing will occur at 9:30 on February 9, 2015.

Pursuant to the Declaration of Carlin Adrianopoli in Support of First Day Pleadings (D.I. 17) (the "Declaration"), RadioShack has over 21,000 employees, 4,400 stores, and 100 million shares of stock. The goal of this bankruptcy is to "promptly reduce costs by closing up to 2,100 underperforming stores". Declaration at *7. As a part of my practice is the defense of preference actions, I couldn't help but notice that the Declaration contains a statement that "merchandise vendors reduced or declined to extend trade credit and/or offered

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

View source

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

Section 363 Sales In Bankruptcy: What Businesses, Lenders, And Buyers Need To Know

When a company enters Chapter 11 bankruptcy, many assume the process will culminate in a lengthy reorganization plan. However, distressed businesses are increasingly being sold through a different mechanism—a sale under Section 363 of the United States Bankruptcy Code. Understanding how Section 363 sales work can help business owners, lenders, investors, and prospective purchasers identify opportunities and avoid costly surprises in bankruptcy asset transactions.
United StatesInsolvency/Bankruptcy/Re-Structuring
Scarinci Hollenbeck LLC
Scarinci Hollenbeck LLC
Article

The Secured Creditor’s Playbook For Section 363 Sales

Section 363 sales have become a routine feature of commercial bankruptcy cases, often determining recovery for secured creditors before a reorganization plan is even filed. Understanding the mechanics of credit bidding, adequate protection rights, and bid procedure negotiations can mean the difference between maximizing recovery and watching collateral sold under unfavorable terms.
United StatesInsolvency/Bankruptcy/Re-Structuring
Adams and Reese LLP
Adams and Reese LLP
Article

Quarterly Brief: What’s New, What’s Next Across Industries In Restructuring & Turnaround (Q2 2026)

Riveron's Q2 2026 Restructuring & Turnaround brief examines how companies across multiple industries are navigating elevated financial distress amid tighter credit conditions, rising debt maturities, and persistent operational pressures. The analysis explores sector-specific challenges from aerospace to retail, highlighting how management teams and lenders are addressing liquidity constraints and restructuring risks in an increasingly selective credit environment.
United StatesInsolvency/Bankruptcy/Re-Structuring
Riveron
Riveron
Article

Putting A Price On Summer Camp: Inside Simad’s $448M Bankruptcy Auction

Cole Schotz attorney Michael Sirota received an urgent early-morning call to file nearly 200 bankruptcy cases within 24 hours after the Shabseles brothers' real estate empire and summer camp network unexpectedly collapsed. With 20,000 children about to board buses for summer camp, the legal team faced the challenge of restructuring a complex web of entities while ensuring the camps could open on schedule.
United StatesInsolvency/Bankruptcy/Re-Structuring
Cole, Schotz, Meisel, Forman & Leonard
Cole, Schotz, Meisel, Forman & Leonard
Article

You Can’t Un-Ring The Bell (Or The Assignment): Bankruptcy Court Dismisses Chapter 11 Cases In Favor Of A Pending ABC Proceeding

In In re Nussbaum Lowinger LLP, the Bankruptcy Court for the Southern District of New York (the Court) dismissed Chapter 11 bankruptcy cases commenced by two law firms and did so in favor of their assignment for the benefit of creditors proceeding already pending in New York state court. This decision provides useful guidance for creditors, assignees, and debtors evaluating whether to move from a state law assignment for the benefit of creditors to a federal bankruptcy case.
United StatesInsolvency/Bankruptcy/Re-Structuring
Arnold & Porter
Arnold & Porter
Article

SDNY Bankruptcy Court Offers Further Direction On Default Interest And Fee Recovery

The Southern District of New York Bankruptcy Court's written decision in 1300 Desert Willow expands upon the Mako framework, clarifying when debtors can challenge an oversecured creditor's entitlement to post-petition default interest at contractual rates. The ruling narrows the application of the "fresh start" factor in single-asset real estate cases and addresses whether Section 506(b)'s reasonableness requirement applies to prepetition claim components, providing critical guidance for bankruptcy practiti
United StatesInsolvency/Bankruptcy/Re-Structuring
Benesch, Friedlander, Coplan & Aronoff LLP
Benesch, Friedlander, Coplan & Aronoff LLP
Article

Maximizing Value Along The Fraudulent Transfer Chain: What Must Be Avoided, And Who Must Be Sued?

A Delaware bankruptcy court ruling clarifies that trustees can pursue subsequent transferees in fraudulent transfer cases without naming the initial transferee as a defendant, though they must still prove and avoid the initial transfer. This decision provides critical guidance for vendors and creditors who may face clawback exposure even when the original wrongdoer isn't sued directly.
United StatesInsolvency/Bankruptcy/Re-Structuring
Lowenstein Sandler LLP
Lowenstein Sandler LLP
Article

California SB 923 Expands CCPA Deletion Rights: How It Compares To The DELETE Act And DROP

Beginning January 1, 2027, consumers will be able to request deletion of covered personal information that a business collected “from or about” them. This is a significant expansion from the current CCPA language that only applies to information collected “from” the consumer. This may include appended contact information, demographic data, marketing segments, identity-resolution data and other information used to enrich a consumer profile.
United StatesPrivacy
Fox Rothschild LLP
Fox Rothschild LLP