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RadioShack Files for Chapter 11 Bankruptcy

WILMINGTON, Del. (CN) - RadioShack filed for Chapter 11 bankruptcy protection Thursday, declaring $1.2 billion in assets and $1.4 billion in debts, $325 million of it unsecured.

The filing was not unexpected. The company is expected to sell 1,750 to 2,400 of its 4,000 U.S. stores and close the rest.

Sprint wireless said it will create a "store within a store" in up to 1,750 stores, where RadioShack items will still be sold.

Its stores in Mexico and Asia are not included in the filing.

RadioShack had about 5,000 U.S. stores a year ago, but competition from Internet sales hurt it. It has been bleeding money for some time.

It was a long, slow slide for RadioShack, whose TRS-80 laptop was beloved and hated by reporters who called it the Trash 80 as they filed stories with it over phone lines, beginning in 1977.

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