Sprint Signs Agreement with RadioShack’s Lender to Expand Branded Stores
OVERLAND PARK, Kan. (BUSINESS WIRE), February 05, 2015 - As part of RadioShack’s recent bankruptcy filing, Sprint (NYSE:S) and General Wireless Inc., a subsidiary of Standard General LP, RadioShack’s largest shareholder, have agreed in principle on terms that would allow Sprint to expand its branded store distribution by approximately 1,750 stores. The proposed transaction is part of the sale of a portion of RadioShack’s assets and assignment of certain leases to General Wireless Inc. Once the transaction is finalized and approved by the bankruptcy court, Sprint and General Wireless Inc. would establish co-branded stores that will exclusively sell mobile devices across Sprint’s brand portfolio as well as RadioShack products, services and accessories.
“We’ve proven that our products and new offers drive traffic to stores, and this agreement would allow Sprint to grow branded distribution quickly and cost-effectively in prime locations,” said Sprint CEO Marcelo Claure. “Sprint and RadioShack expect to benefit from operational efficiencies and by cross-marketing to each other’s customers.”
Under the terms of the new agreement, Sprint would effectively operate a store within a RadioShack store, occupying approximately one third of the retail space of each location. Sprint employees will sell mobile devices and plans on all Sprint brands including Boost and Virgin Mobile. The stores will be co-branded with Sprint being the primary brand on storefronts and in marketing materials.
Sprint currently has more than 1,100 company-owned retail stores, which would more than double if the transaction is approved.
The transaction is expected to be finalized in the coming months and is subject to approval by a Delaware bankruptcy court and to a closing period.
This release includes “forward-looking statements” within the meaning of the securities laws. The words “may,” “could,” “should,” “estimate,” “project,” “forecast,” “intend,” “expect,” “anticipate,” “believe,” “target,” “plan,” “providing guidance,” and similar expressions are intended to identify information that is not historical in nature. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future — including statements relating to the agreement with RadioShack and its pending bankruptcy, as well as statements expressing general views about future operating results, brand distribution and efficiencies — are forward-looking statements. Forward-looking statements are estimates and projections reflecting management’s judgment based on currently available information and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. With respect to these forward-looking statements, management has made assumptions regarding, among other things, the ability to operationalize the anticipated benefits from the RadioShack transaction, including the approval thereof by the bankruptcy court, as well as anticipated efficiencies of the agreement. Sprint believes these forward-looking statements are reasonable; however, you should not place undue reliance on forward-looking statements, which are based on current expectations and speak only as of the date when made. Sprint undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. In addition, forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our company's historical experience and our present expectations or projections. Factors that might cause such differences include, but are not limited to, those discussed in Sprint Corporation’s Transition Report on Form 10-K for the period ended March 31, 2014. You should understand that it is not possible to predict or identify all such factors. Consequently, you should not consider any such list to be a complete set of all potential risks or uncertainties.
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