Seattle based Amazon, the world’s largest e-commerce company, has discussed acquiring some locations of Radio Shack Corp. Bloomberg reported late yesterday, citing two unnamed people with knowledge of the matter.
Yesterday the New York Stock Exchange suspended trading shares of Radio Shack because the Fort Worth company doesn’t have a high enough valuation to be listed on the exchange, which sets a $50 million market cap benchmark over 30 days for publically traded companies.
Radio Shack is cash strapped and has struggled to close over 1,100 stores since March due to the high costs associated with liquidation, severance, and penalties associated from breaking lease agreements.
Radio Shack is heading for bankruptcy court unless another bidder can buy Radio Shack and keep it operational.
Some of the other bidders joining Amazon for Radio Shack stores include Sprint and Brookstone, an investment firm.
Sprint has reportedly discussed buying 1,300 to 2,000 of Radio Shack’s 4,000 U.S. stores.
According to Bloomberg’s two cited sources, Amazon has considered using the Radio Shack stores as showcases for its own hardware in addition to using the locations as a potential pick up and drop off centers for online customers.
Amazon is competing against a host of other tech retailers such as Apple and Microsoft that both operate retail spaces in high traffic areas across the globe while other large competing retailers such as Wal-Mart and Best Buy now offer free shipping and have vast retail locations for free store pickup.
Adding retail stores across the United States could make Amazon.com deliveries more efficient and help the Seattle based company to showcase its Kindle devices, Amazon Fire Smartphone, and latest voice activated Amazon Echo, a speaker that can stream music, add products to a shopping list, and respond to questions.