Sprint Signs Agreement with RadioShack’s Lender to Expand Branded Stores
February 05 2015 - 5:22PM
Business Wire
As part of RadioShack’s recent bankruptcy filing, Sprint
(NYSE:S) and General Wireless Inc., a subsidiary of Standard
General LP, RadioShack’s largest shareholder, have agreed in
principle on terms that would allow Sprint to expand its branded
store distribution by approximately 1,750 stores. The proposed
transaction is part of the sale of a portion of RadioShack’s assets
and assignment of certain leases to General Wireless Inc. Once the
transaction is finalized and approved by the bankruptcy court,
Sprint and General Wireless Inc. would establish co-branded stores
that will exclusively sell mobile devices across Sprint’s brand
portfolio as well as RadioShack products, services and
accessories.
“We’ve proven that our products and new offers drive traffic to
stores, and this agreement would allow Sprint to grow branded
distribution quickly and cost-effectively in prime locations,” said
Sprint CEO Marcelo Claure. “Sprint and RadioShack expect to benefit
from operational efficiencies and by cross-marketing to each
other’s customers.”
Under the terms of the new agreement, Sprint would effectively
operate a store within a RadioShack store, occupying approximately
one third of the retail space of each location. Sprint employees
will sell mobile devices and plans on all Sprint brands including
Boost and Virgin Mobile. The stores will be co-branded with Sprint
being the primary brand on storefronts and in marketing
materials.
Sprint currently has more than 1,100 company-owned retail
stores, which would more than double if the transaction is
approved.
The transaction is expected to be finalized in the coming months
and is subject to approval by a Delaware bankruptcy court and to a
closing period.
SAFE HARBOR
This release includes “forward-looking statements” within the
meaning of the securities laws. The words “may,” “could,” “should,”
“estimate,” “project,” “forecast,” “intend,” “expect,”
“anticipate,” “believe,” “target,” “plan,” “providing guidance,”
and similar expressions are intended to identify information that
is not historical in nature. All statements that address operating
performance, events or developments that we expect or anticipate
will occur in the future — including statements relating to the
agreement with RadioShack and its pending bankruptcy, as well as
statements expressing general views about future operating results,
brand distribution and efficiencies — are forward-looking
statements. Forward-looking statements are estimates and
projections reflecting management’s judgment based on currently
available information and involve a number of risks and
uncertainties that could cause actual results to differ materially
from those suggested by the forward-looking statements. With
respect to these forward-looking statements, management has made
assumptions regarding, among other things, the ability to
operationalize the anticipated benefits from the RadioShack
transaction, including the approval thereof by the bankruptcy
court, as well as anticipated efficiencies of the agreement. Sprint
believes these forward-looking statements are reasonable; however,
you should not place undue reliance on forward-looking statements,
which are based on current expectations and speak only as of the
date when made. Sprint undertakes no obligation to publicly update
or revise any forward-looking statements, whether as a result of
new information, future events or otherwise, except as required by
law. In addition, forward-looking statements are subject to certain
risks and uncertainties that could cause actual results to differ
materially from our company's historical experience and our present
expectations or projections. Factors that might cause such
differences include, but are not limited to, those discussed in
Sprint Corporation’s Transition Report on Form 10-K for the period
ended March 31, 2014. You should understand that it is not possible
to predict or identify all such factors. Consequently, you should
not consider any such list to be a complete set of all potential
risks or uncertainties.
About Sprint:
Sprint (NYSE: S) is a communications services company dedicated
to delivering the best value in wireless. Sprint served 55 million
customers as of September 30, 2014 and is widely recognized for
developing, engineering and deploying innovative technologies,
including the first wireless 4G service from a national carrier in
the United States; leading no-contract brands including Virgin
Mobile USA, Boost Mobile, and Assurance Wireless; instant national
and international push-to-talk capabilities; and a global Tier 1
Internet backbone. Sprint has been named to the Dow Jones
Sustainability Index (DJSI) North America for the last four years.
You can learn more and visit Sprint at www.sprint.com or
www.facebook.com/sprint and www.twitter.com/sprint.
SprintMedia:Doug Duvall,
571-287-8153Douglas.Duvall@sprint.comorInvestor:Jud Henry,
800-259-3755Investor.relations@sprint.com
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