Radio Shack Seeks to Assume and Assign Leases for Closing Stores
On February 11, 2014, Radio Shack filed a motion with the Delaware Bankruptcy asking the Court to approve procedures for the assumption and assignment of leases for 1,734 stores at which Radio Shack is currently conducting store closing sales. Radio Shack is requesting that the Bankruptcy Court schedule a hearing for February 18, 2015 for the approval of assumption and assignment procedures that would include a deadline to submit bids, an auction, and a hearing on February 27, 2014 to ask the Court to approve the assumption and assignment of leases for which Radio Shack receives qualified bids. Pursuant to the requested procedures, Landlords will be permitted to submit bids for their own leases.
At a hearing on February 9, 2015, attorneys for Radio Shack informed the Delaware Bankruptcy Court that they would be filing a motion to seek this relief. Radio Shack told the Bankruptcy Court that the expedited schedule is required because it anticipates that the store closing sales will be completed at approximately 1,100 location by the end of February. The leases for these stores must be either assumed and assigned or rejected by the end of February in order to avoid incurring rent due on these leases on March 1. In conjunction with the lease assumption and assignment motion, Radio Shack filed a motion seeking to shorten notice and schedule an expedited on the motion. The Bankruptcy Court has scheduled a telephonic hearing on the motion to shorten for February 17, 2015 at 9:30 a.m.