(Reuters) - Standard General LP's reduced buyout offer of $145.5 million is RadioShack Corp's
The offer is less than the earlier estimate of $200 million made by the hedge fund because the lead bidder is leaving hundreds of RadioShack stores behind, the Journal reported. (http://on.wsj.com/1B87GPN)
The deal with Standard is the only proposal that could save 9,000 jobs at the retailer, Standard General's lawyer Gregg Galardi said at a court hearing, according to the report.
RadioShack won bankruptcy court approval last month to auction about 2,000 of its stores with an initial $200 million bid from Standard General, which would have kept about half of the stores open and operate them under an agreement with Sprint Corp (N:S).
Standard General has now offered to take 1,723 outlets and requires RadioShack's proposed new owner to come up with only $18.6 million in cash. The rest of the offer is in the form of a "credit bid," or offer to cancel debt, the Journal reported.
Fort Worth, Texas-based RadioShack's bankruptcy filing came after years of losses as online retailers such as Amazon.com Inc (O:AMZN) gobbled up the chain's market share.
Representatives at RadioShack and Standard General were not immediately available for comment outside regular U.S. business hours.