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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsRadioShack Proposes Up to $3 Million in Employee Bonuses To Bankruptcy Court
RadioShack Proposes Up to $3 Million in Employee Bonuses To Bankruptcy Court
http://consumerist.com/2015/02/11/radioshack-proposes-up-to-3-million-in-employee-bonuses-to-bankruptcy-court/
RadioShack isnt going out of business forever (yet), but instead may live on as a brand in co-branded stores with mobile provider Sprint. the electronics chain is holding liquidation sales in many of the stores theyre working to close. Yet at the same time that the company is preparing to shut about half of their stores, theyve sought permission from the bankruptcy court to pay out about $3 million in bonuses.
This is all very normal for executives, of course, even at companies that are broke and shutting down. The Shack has been in trouble for some time, not turning a profit in two years and nine months. While its important to hold on to staff members who know whats going on during massive transitions like this, Shack-watchers may question the decision to set aside money for retention and performance bonuses for a few dozen chain employees, including eight executives. Yet the chain thinks of this as an investment of sorts: by setting aside $30 million for bonuses, the companys value is $30 million higher than it would have been without those executives in place. It just looks really, really bad: especially to the front-line customers who are dealing with liquidation sale vultures now and will lose their jobs in just a few weeks.
General GP, a major company shareholder, has announced plans to buy 1,400 to 2,500 RadioShack stores and run them as joint Sprint-RadioShack stores. Sprint had been looking to expand its real-life retail presence, and the Radio Shack brand could simply fade over time until its just the brand name on some batteries for sale in the corner of the Sprint store.
http://consumerist.com/2015/02/11/radioshack-proposes-up-to-3-million-in-employee-bonuses-to-bankruptcy-court/
RadioShack isnt going out of business forever (yet), but instead may live on as a brand in co-branded stores with mobile provider Sprint. the electronics chain is holding liquidation sales in many of the stores theyre working to close. Yet at the same time that the company is preparing to shut about half of their stores, theyve sought permission from the bankruptcy court to pay out about $3 million in bonuses.
This is all very normal for executives, of course, even at companies that are broke and shutting down. The Shack has been in trouble for some time, not turning a profit in two years and nine months. While its important to hold on to staff members who know whats going on during massive transitions like this, Shack-watchers may question the decision to set aside money for retention and performance bonuses for a few dozen chain employees, including eight executives. Yet the chain thinks of this as an investment of sorts: by setting aside $30 million for bonuses, the companys value is $30 million higher than it would have been without those executives in place. It just looks really, really bad: especially to the front-line customers who are dealing with liquidation sale vultures now and will lose their jobs in just a few weeks.
General GP, a major company shareholder, has announced plans to buy 1,400 to 2,500 RadioShack stores and run them as joint Sprint-RadioShack stores. Sprint had been looking to expand its real-life retail presence, and the Radio Shack brand could simply fade over time until its just the brand name on some batteries for sale in the corner of the Sprint store.
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RadioShack Proposes Up to $3 Million in Employee Bonuses To Bankruptcy Court (Original Post)
Miles Archer
Feb 2015
OP
shenmue
(38,506 posts)1. I hope the regular workers get something out of this
not just the high-ranking people.
PoliticAverse
(26,366 posts)2. Maybe some free batteries. n/t
jberryhill
(62,444 posts)3. Or a free one every month
herding cats
(19,564 posts)4. Which, in this case, is about 7 days longer than they last. nt