RadioShack declares bankrupcy today! (2/5/15)

[Sonikku]

Gamestop isn't going anywhere. Their margins are plenty fat enough off preowned games to at least sustain themselves.

 

[mmntech]

Gamestop isn't going anywhere. Their margins are plenty fat enough off preowned games to at least sustain themselves.

Console makers have the Sword of Damocles dangling over GameStop's head. The second any major console decides to go all-digital, they're toast. The used/retro for old systems business won't be able to sustain them at their current scale.

Of course as we say with the XBL/PSN blackout, digital isn't always ideal. Those games have DRM that needs to phone home in order to run. Can't connect to the servers? To bad, so sad. Why that's necessary on a walled garden platform that hasn't been cracked is beyond me.

 

[Carson Dyle]

They filed Chapter 11 (liquidation). So I'm curious how this works. Sprint just purchases several of their stores?

Chapter 11 is not "liquidation"

The RadioShack brand name is not going away. Sprint is going to purchase 1750 stores and will be the primary brand name on the stores, along with RadioShack. But Sprint will occupy only about 30% of the floor space in the stores and RadioShack will have the remaining space to sell their own products.

 

[Raizinman]

Very fond memories of Radio Shack. I bought a Model II (8 inch disks) from them way back when. With the printer and software, it was a bit over $10,000. I was back in Radio Shack spending money every month. I loved that store and envied the people who worked there. Over the last 10 or 15 years, Radio Shack has gone down hill. Their small electronic parts were so over priced, that I just ordered on Ebay and waited the 2 weeks for it to be delivered. There was no customer support, no new products, and their stores looked like a bazaar. The CEO of Radio Shack should have been canned years ago, as he is the one responsible for running them into the grave. Likely he will be the only one profiting from this as the CEO always comes away with a prize package.

 

[zerocool84]

Console makers have the Sword of Damocles dangling over GameStop's head. The second any major console decides to go all-digital, they're toast. The used/retro for old systems business won't be able to sustain them at their current scale.

Of course as we say with the XBL/PSN blackout, digital isn't always ideal. Those games have DRM that needs to phone home in order to run. Can't connect to the servers? To bad, so sad. Why that's necessary on a walled garden platform that hasn't been cracked is beyond me.

The switch to all digital isn't happening this generation which is obvious by the Xbox One backlash so they still have a a good while to live.

 

[Sonikku]

Console makers have the Sword of Damocles dangling over GameStop's head. The second any major console decides to go all-digital, they're toast. The used/retro for old systems business won't be able to sustain them at their current scale.

Of course as we say with the XBL/PSN blackout, digital isn't always ideal. Those games have DRM that needs to phone home in order to run. Can't connect to the servers? To bad, so sad. Why that's necessary on a walled garden platform that hasn't been cracked is beyond me.

Not going to happen. America is wide and open and with Warner Cast and co keeping congress in their pocket, giving America shitty internet and leaving wide gaps in coverage in the countries rural country despite accepting subsidies designed to deal with said territories, I don't think Gamestop has much to worry about with a console maker going "all digital or else". The last time Microsoft tried anything remotely close to this was with the One and it was an unmitigated disaster for just that reason.

Don't get me wrong though, if America had their shit together and were as hooked up as South Korea, Gamestop would be fucked.

 

[james1701]

The sales are starting without being marked. They had a Logitech Harmony on listed on sale for 59.99 online to match Amazon. On the shelf, it was not even listed as on sale. When they rang me up, it was 47.25 out the door. Even the cashier did not know prices were being dropped.

When I spoke to the manager, they said all the stores are not getting notice of closing at the same time. He said slash and burn pricing should be showing up over the next three or four days on the shelves.

 

[StrangerGuy]

Nobody builds boards anymore, there's no ham radio operators, CB operators, stereo speaker builders, or computer builders anymore. Is anyone surprised they couldn't sustain all these storefronts by being the equivalent of a mall cell phone accessory kiosk?

It doesn't even make sense to DIY speakers now when a pair Micca MB42x and a Lepai T-amp can be had for 100 bucks and gives hi-fi grade sound.

 

[GagHalfrunt]

Radioshack's farewell message

https://www.youtube.com/watch?v=3FCioWz7aps&t=1m37s

 

[Ns1]

It doesn't even make sense to DIY speakers now when a pair Micca MB42x and a Lepai T-amp can be had for 100 bucks and gives hi-fi grade sound.

marked

 

[Anubis]

Nobody builds boards anymore, there's no ham radio operators, CB operators, stereo speaker builders, or computer builders anymore. Is anyone surprised they couldn't sustain all these storefronts by being the equivalent of a mall cell phone accessory kiosk?

ummmm what?

 

[slag]

Exactly, um, what? Sure, its not the craze it was post ww2 up to the 80s, but there are still plenty of speaker builders, ham radio operators, and computer builders and breadboard builders who need an extra cap, diode, fuse holder, or whatever at the last minute who don't want to wait for mouser or whatever to deliver it in a week. I will miss radio shack. The one close to my house closed. It's now a 10 minute drive to the other larger store which isn't that bad, but still sad to see happen.

 

[Hugo Drax]

The problem is RadioShack had too many stores and pretty much sold the same shit you can buy at best buy.

Not a recipie for success. But the problem is American CEOs only plan 3 months at a time, focused on meeting Analyst EPS numbers at the expense of the long term health of the company.

American CEOs worry too much in regards to massaging EPS and getting thier bonus.

 

[CountZero]

The problem is RadioShack had too many stores and pretty much sold the same shit you can buy at best buy.

Not a recipie for success. But the problem is American CEOs only plan 3 months at a time, focused on meeting Analyst EPS numbers at the expense of the long term health of the company.

American CEOs worry too much in regards to massaging EPS and getting thier bonus.

In this case the CEO was thinking long term, wanting to shut down many more stores. It was the creditors that said no.

Also, in many cases, it isn't the CEO that is most short sighted it is the board. They approve CEO plans, they can pushback if a CEO wants to cost the company in the short term in order to better position for the long term. If a CEO butts heads with the board too much they can also move to remove that CEO. So CEOs end up towing the short term gains line as it is what they are told to do.

CEOs, especially those that rose up through the ranks internally, are more than capable of working towards long term growth but the board wants to see shareholder value constantly rise and will rarely sway from that position until a company is on the decline.

I don't feel sorry for CEOs, nor do I think they are all worried about long terms gains but I do think the boards of these companies are also largely responsible and yet they escape with barely a mention.