RadioShack's Owner Reportedly Seeks Bankruptcy Protection

(RTTNews) - RadioShack's owner is preparing to seek bankruptcy protection for the second time in as many years, according to reports citing people familiar with the matter.

Parent company General Wireless Operations Inc. is in discussions with partner Sprint Corp. and potential strategic investors about reducing the chain's footprint and could file for chapter 11 protection as soon as Tuesday, the reports said. Sprint operates sections in many RadioShack stores that sell its wireless service and smartphones.

The company in recent weeks laid off dozens of headquarters employees and has already started closing roughly 200 stores.

RadioShack Corp. filed for bankruptcy in 2015. The company closed about half of its 4,000 stores and sold 1,700 to creditor Standard General LP, which teamed up with Sprint to form General Wireless.