Visit our other websites:    On CE    eSP    Mobile Channels    ECI news    rAVe Europe    Digital Signage News EMEA    iChannels

Lawsuit Blames Sprint for RadioShack Bankruptcy!

E-mail Print PDF

A group of RadioShack creditors are blaming Sprint for the second bankruptcy of the anachronistically-named RadioShack-- and are suing US mobile carrier for the damages.

Radioshack SprintAs Reuters reports, the lawsuit is looking for $500 million in damages. It claims "Sprint Corp used confidential information from its alliance with RadioShack Corp to open competing mobile phone stores, dooming the comeback by the electronics retailer and destroying jobs."

Sprint allegedly used insider information to open 200 Sprint stores near the best RadioShack locations, and as a result "destroyed nearly 6000 RadioShack jobs." In addition, the carrier is accused of further breach of contract by ignoring provide inventory and staff to RadioShack stores due to its own financial troubles.

In turn, Sprint insists it did nothing wrong, and plans to defend the matter "vigorously."

After filing for Chapter 11 protection back in February 2015, RadioShack signed a co-branding agreement with Sprint in order to save 1740 stores. The stores carried both RadioShack and Sprint names, with Sprint occupying around 30% of store floorspace to sell mobile devices and wireless plans. However the deal failed to rescue Radiosack, and in March 2017 it signed for Chapter 11 protection. Again.

Go RadioShack Creditors' Lawsuit Says Sprint Killed 6000 Jobs