RadioShack is placing part of the blame for its failed comeback on former retail partner and U.S. wireless carrier Sprint.
In a lawsuit filed with Delaware’s Superior Court, the electronics store claimed Sprint used confidential information from the pair’s co-branding venture to open its own competing locations, Reuters reported. RadioShack says the move stole traffic from its own stores, hindering its comeback following a 2015 bankruptcy and resulting in thousands of lost jobs.
Sprint and RadioShack teamed up following the latter’s 2015 Chapter 11 proceedings, penning an agreement to open more than 1,400 co-branded locationstogether. The move more than doubled the number of Sprint retail stores. RadioShack CEO Ron Garriques at the time called the deal an “important partnership.”
But RadioShack now says Sprint betrayed the terms of the pair’s contract, using confidential details from the partnership to help further its own distribution expansion. Sprint also reportedly failed to supply inventory and staff to the co-branded stores. Ultimately, RadioShack alleges Sprint played a role in destroying “nearly 6,000 RadioShack jobs,” Reuters noted.
RadioShack filed for bankruptcy a second time in March of this year.
A Sprint spokeswoman said the carrier is “disappointed the creditors’ committee took this action,” but said Sprint will “defend the matter vigorously.”
