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Radio Shack Bankruptcy

Discussion in 'Business Fundamentals' started by FourDiamond, Feb 6, 2015.

  1. FourDiamond

    FourDiamond Senior Member
    Messages: 129

    Does another else service a Radio Shack location? The bankruptcy filing of 2/5/2015 has left us with very little information other than according to the facilities coordinator " We need the location serviced until further notice." Well duh, I'm worried about getting paid for the service, not if they need it done. The outstanding invoices will have to go through the bankruptcy court, that's easy to know, but does anyone have any information about billing going forward?
  2. Plowingsince10

    Plowingsince10 Junior Member
    from Ottawa
    Messages: 17

    Just a matter of time before they went on bankruptcy.... it was on the news for a few months..
    hopefully you get fully paid..good luck!
  3. SnoFarmer

    SnoFarmer PlowSite Fanatic
    from N,E. MN
    Messages: 7,921

    Now that they bounced off of the bottom,
    I think version is going to pick them up and rebrand.
  4. Mr.Markus

    Mr.Markus PlowSite Fanatic
    Messages: 5,107

    There is a Target in my neck of the woods that looks better now that they announced they are pulling out of Canada, than it did before the announcement...someone must be slamming them with salt charges...
  5. procut

    procut Senior Member
    Messages: 902

    If it's a independently owned franchise you might get paid. If it's corporate owned invoices will have to go through bankruptcy court where you might get pennies on the dollar if you're lucky. I'd send them a letter cancelling. To much hassle / good chance of never getting paid.
  6. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Depends if they are free standing stores. If they are in a strip plaza the landlord is responsible for plowing.
  7. billythekid

    billythekid Junior Member
    Messages: 14

    I give them credit for even lasting this long. As far as I can tell they have been obsolete for nearly a decade. I agree with them. Cancel if payment is in question.
  8. FourDiamond

    FourDiamond Senior Member
    Messages: 129

    Free standing, corporate owned store. Since the original post we were able to get some more info. All invoices up to and including Feb 5, 2015 will be handled through the bankruptcy trustee, and we will probably get a small percentage of the original bill. All invoices after that date will be paid by the trustee in full, if they continue with Chapter 11 filing. Since there is only about 8 weeks of winter left, this status probably won't change.
  9. thelettuceman

    thelettuceman PlowSite.com Addict
    Messages: 1,216

    In bankruptcy all contracts are null and void. Stop plowing now. You will get pennies on a dollar for what you are owed. If they call, get cash and only cash ahead of time. No checks!!! No I.O.U.!!!
  10. fireball

    fireball PlowSite.com Veteran
    Messages: 535

    In a bankruptcy, it is up to the bankruptcy trustee if a contract is null and void. When in doubt, call a lawyer. The bankruptcy trustee can actually back up the clock two years if they want. In other words they can make you return all your paid bills for the last two years. An example of this is what they are doing in the Bernie Madoff case. I would continue to service them but never spend more than 10 minutes doing it. Nobody said it had to be perfect.

    My personal experience is that once they declare Bankruptcy, the trustees pay all invoices 100% from the day they declare. If they have past due before declaring, prepare yourself for disappointment. The people who show up in court for the hearing's, asking lots of questions, and complaining tend to get paid because they slow the lawyers down considerable. Spend a couple days in federal bankruptcy court, you will see why lawyers are driving BMW's and you are driving a 10 year old truck. It is legalized looting for lawyers
  11. thelettuceman

    thelettuceman PlowSite.com Addict
    Messages: 1,216

    fireball: good info just above this
  12. Defcon 5

    Defcon 5 PlowSite.com Addict
    Messages: 1,512

    In the Madoff case the trustees are going after the Profits made on the investments made with Madoff.....
  13. Defcon 5

    Defcon 5 PlowSite.com Addict
    Messages: 1,512

    Do you do this store through a NSP or direct???
  14. FourDiamond

    FourDiamond Senior Member
    Messages: 129

    It's a direct customer. Fireball is correct, at this point its up to the bankruptcy trustee to determine if the contract remains in effect or not. So as per our lawyer we will continue to service the account until the trustee tells us not to. Based on how slow the system works, that determination will come long after the end of the season. One bright spot, if there is one, this location is to remain open as a re-branded Sprint/ something else location. So we may be able to retain the location.
  15. fireside

    fireside Senior Member
    Messages: 657

    Here is what happened to me in an bankrupt case you can make your own decision. All invoices that occurred prior to the filing I was paid 13 cents on the dollar. After the filing for the two storms I plowed I was paid 29 cents on the dollar based on some sliding national scale. That took 3 years to get paid. I had wrote off the money into a check showed up in the mail. I would strongly suggest your right to cancel services. You are a very small fish in the court action
  16. pressedun

    pressedun Junior Member
    Messages: 18

    Absolutely cancel service immediately, you'll lose yourshirt on every single service you do. Getting 10-30 percent of your total invoices probably won't cover your labor, gas and salt.
  17. fireball

    fireball PlowSite.com Veteran
    Messages: 535

    surprise.suprise. The trustee for Bernie Madoff announced that everyone that had a account with Bernie under 973,000.00 would be fully reimbursed. Everyone else would be paid at 50% so far
  18. thelettuceman

    thelettuceman PlowSite.com Addict
    Messages: 1,216

    I am sending a snow plow bill for $972,999.99:D
  19. leigh

    leigh PlowSite.com Addict
    from CT
    Messages: 1,968

    Years ago I got stiffed out a few thousand when Franks Nurserys went under.But after the trustee took over I was paid at that point forward as was required by bankruptcy ruling.I upped my pricing and was able to recoup some of the money owed.It turned a bad situation into a slight loser.Might work out for you.payup
  20. Ramairfreak98ss

    Ramairfreak98ss PlowSite.com Addict
    Messages: 1,885

    once bankruptcy is filed, and creditors notified "whomever hired you", you can NO LONGER make efforts to collect on said services.

    I don't know exactly if services performed AFTER the date of bankruptcy can be discharged too "i assume not", but everything done prior, can be wiped out technically... that means you'll see little to nothing from prior services unless RAdio shack has already paid the company between you and them, even if thats the case, you risk the unethical companies in between that may sit on those funds and claim they didn't receive them and simply elect NOT to pay you anyway.

    Sucks, i know years ago Rite aid was close to this and guys were worried over the winter what happens if....