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Bankruptcy Vendor/Supplier FAQ

     

    1. What was announced?
    • General Wireless Operations Inc. and several affiliated companies have filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code.
    • RadioShack stores, independent dealers, and radioshack.com are currently open for business and serving customers.
    • We are exploring all available options for the Company, including alternative business models that will enable us to keep some stores and radioshack.com open on an ongoing basis.

     

    1. Does filing for restructuring under Chapter 11 mean that RadioShack is going out of business?
    • Some RadioShack stores and radioshack.com are currently open for business and serving customers.
    • We are exploring all available options to maximize value for creditors, including alternative business models that will enable us to keep some stores open on an ongoing basis.
    • Additionally, we expect the 425 independent dealers stores to continue to serve communities nationwide

     

    1. Does RadioShack have sufficient liquidity to meet its business obligations?
    • The Company expects that its cash on hand, combined with funds generated from ongoing operations, will provide sufficient liquidity to continue operating in the ordinary course throughout this process, including paying suppliers for all goods and services provided on or after the filing date of March 8, 2017.

     

    1. Will suppliers be paid for goods or services provided after the filing date?
    • We intend to pay suppliers for goods and services provided on or after the filing date of March 8, 2017. In fact, the Bankruptcy Code gives administrative priority to payment of such claims.
    • Invoices for goods and services provided after the filing date should be submitted through the typical accounts payable channels and payments will be processed in accordance with contract terms.

     

    1. Will suppliers be paid for goods or services provided prior to the filing date?
    • The U.S. Bankruptcy Code mandates that unpaid debts for goods and services provided to RadioShack prior to March 8, 2017, the date of the Chapter 11 filing, cannot be paid without specific bankruptcy court authorization.
    • Information about the claims process is available at a website maintained by Prime Clerk at https://cases.primeclerk.com/generalwireless/ .

     

    1. Will RadioShack continue to order goods and services from its suppliers?
    • The Company is continuing to purchase goods and services that it believes are essential to its ongoing operations.

     

    1. We have a contract with you. Are you going to be able to satisfy it?
    • RadioShack intends to maintain existing payment terms and expects our suppliers to continue to honor existing agreements.
    • If you have a contract with RadioShack, bankruptcy laws require that you continue to perform services or provide products under that agreement unless otherwise ordered by the Court.
    • We are committed to the relationship we have developed with your organization and will continue to work closely with you throughout this process.

     

    1. Can I take back my goods?
    • It is against the law to take back goods from a company that has filed for Chapter 11.
    • Any reclamation claim or payment for those goods will be determined as the Chapter 11 process moves forward. Payment for these goods or supplies must be approved by the Bankruptcy Court.

     

    1. When do you expect to complete the Chapter 11 process?
    • We intend to move through the process as quickly as possible.
    • Please be assured that we are committed to providing you with timely updates as new information becomes available.

     

    1. How do I file a proof of claim?

     

    1. Is there somewhere I can look to stay current on developments or to obtain more information?
    • We will keep you informed about our progress as appropriate as we move forward with the process.
    • Our claims agent, Prime Clerk, has also set up a website at https://caseprimeclerk.com/generalwireless that includes court documents and other information.