Lawsuit claims Sprint caused RadioShack’s latest bankruptcy

RadioShack’s creditors say Sprint destroyed 6,000 jobs and breached contract.

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Drew Angerer via Getty Images
Drew Angerer via Getty Images

In 2015, RadioShack filed for bankruptcy and shortly thereafter co-branded around 1,400 of its remaining stores with Sprint. Just over two years later, RadioShack has filed for bankruptcy again and a group of its creditors says it's largely Sprint's fault.

In a lawsuit filed this week, the creditors claim that Sprint didn't follow through with providing inventory and staff to the shared stores and used information from the partnership to open 200 competing stores near RadioShack's most successful locations. The lawsuit says that by doing that, Sprint destroyed around 6,000 RadioShack jobs and prevented the chain's recovery.

The suit is seeking $500 million in damages from Sprint, who has gone on to make other partnerships since its one with RadioShack. Sprint, owned by SoftBank, bought a 33 percent stake in Tidal earlier this year and is reportedly in discussions to make a deal with Charter and Comcast, which has put ongoing talks of a merger with T-Mobile on hold.

A spokesperson for Sprint said the company would be fighting the lawsuit and was disappointed by the creditors' claims.

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