Radio Shack vs The Source

[WobbleWobble]

Can someone explain what's happening with these two companies?

So why did all the existing Radio Shacks turn into Circuit City's The Source? And now I see that Radio Shack is returning to Canada? Can someone give me the backgrounder on the situation with Radio Shack? 😕

 

[Chompman]

Sounds like Circuit City bought them.

Couldn't tell you since I never shop there. 😛

 

[WobbleWobble]

That's what I initially thought. But that wouldn't explain Radio Shack returning to Canada after all the old Radio Shack stores have been turned in Circuit City ones.

 

[randal]

http://radioshackisback.com/en/news.asp#news3

edit - basically radioshack stopped licensing "radioshack" to Circuit City in Canada, and is instead opening up all of it's own stores. This, combined with the recent $500M in stock buyback has sent their share value tumbling ... I think that it'll rebound though, as the new stores & decreased number of oustanding shares will make the profits that much higher.

I only keep these things in mind because I have several thousand dollars into RadioShack since I worked there for 18 months in HS. 🙂

 

[Keyvan]

ya, I thought that that was confusing too

any idea when Radio Shack is returning?

 

[WobbleWobble]

So the group that's opening the new Radio Shacks is a different group than the people who owned the old Radio Shacks?

 

[randal]

Originally posted by: WobbleWobble
So the group that's opening the new Radio Shacks is a different group than the people who owned the old Radio Shacks?

Yes, the previous RadioShacks were owned by a Circuit City subsidiary called "InterTAN." RadioShack terminated the licensing contract with InterTAN/Circuit City. Because of that, CircuitCity/InterTAN had to pull all of it's radioshack-branded signage down, close their stores, etc.

RadioShack should be opening up a crapton of stores in short order to fill the gaps left by this movement. From what I've heard on the rumor mill, though, is that CircuitCity/InterTAN franchises that use the RadioShack name will be provided the opportunity to sell outright to RadioShack Corporate, or to begin franchising anew with RadioShack Corporate.

edit - which means that things went sour between RadioShack & CircuitCity/InterTAN, and that RadioShack has no beef with the franchise folks -- hence being giving them options while screwing over CC/IT.

 

[Keyvan]

my uneducated guess is that somehow CC took over what was Radio Shack, and the people that owned Radio Shack now want to come back.

as in for example, Radio Shack sells all the inventory it owns, store locations and human resources minus the brand to Circuit City, but then changes its mind.. i dunno how things went down, but I guess this is a possibility.

edit: as you can see from the previous, my guess was really indeed uneducated, and so I suggest that you ignore this post.

 

[WobbleWobble]

Ah, that makes sense. Thanks randal!