Hedge fund Standard General LP has offered $20 million for rights to the RadioShack name, adding to its offer to buy 1,700 or more of the troubled retailer’s stores.
RadioShack Corp. lawyer Gregory Gordon announced the enhanced offer Wednesday at a bankruptcy-court hearing where Standard General, a big shareholder and lender, is trying to win approval to lead the bidding at a March 23 auction.
Creditors have cast a wary eye at Standard General’s bid for part of the RadioShack business, in part because the hedge fund said it would keep the business in operation but didn’t propose to buy the name and trademarks.
Standard General has a deal to offer co-branded stores with Sprint Corp., but creditors wondered what brand would share with Sprint if the RadioShack name wasn’t part of the deal.
Lenders Cerberus Capital Management and Salus Capital Partners have prime claim on the RadioShack brand. They are owed, collectively, $250 million.
