RadioShack files for bankruptcy

It's official: RadioShack has filed for bankruptcy.

In a release on Thursday evening, the electronics retailer disclosed that it has reached an agreement with hedge fund Standard General for the firm to purchase up to 2,400 of its stores.

To facilitate this sale, the company has filed for Chapter 11 bankruptcy protection in Delaware.

Standard General's affiliate, General Wellness, has also reached an agreement with Sprint to, "establish a new dedicated mobility 'store within a store' retail presence in up to 1,750 of the acquired stores."

In a statement, RadioShack said:

RadioShack currently has approximately 4,000 company owned stores in the U.S. Its more than 1,000 dealer franchise stores in 25 countries, the stores operated by its Mexican subsidiary, and its Asia operations are not included in the Chapter 11 filing or the agreements announced today.

Discussions are underway with interested parties to sell all of the company's remaining assets.

Joe Magnacca, RadioShack's chief executive officer, said, "These steps are the culmination of a thorough process intended to drive maximum value for our stakeholders."

In a separate announcement, Sprint said it will occupy about one-third of the space in RadioShack locations in which it operates a "store within a store," with Sprint employees selling mobile devices and plans.

The stores will be co-branded, with Sprint being the primary brand on storefronts and in marketing materials.

RadioShack's bankrupt filing marks the end of a long march towards bankruptcy, as the company's sales have deteriorated in recent years and the stock has fallen by more than 99% over the last decade.

Earlier this week, the NYSE suspended trading in shares of RadioShack.