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Radio Shack seeks to renegotiate lease agreements

Business owners in New Jersey know that planning is a critical aspect of any company's success. Failing to create, adjust, and carry out a business plan can lead to a variety business disputes involving lessors, suppliers, and competing companies. These disagreements often lead not only to costly and contentious litigation, but they can also eat into a business' profits and cause it to lose a portion of its market share. For these reasons it is vitally important for businesses to consider seeking the assistance of an experienced business law attorney at all stages of the business planning process.

Radio Shack is struggling with its plan to revitalize its business and its image. The company, which has 4,300 stores, recently sought to close up to 1,100 of its locations, but covenants with its bankers will only allow them to close 600 of their stores through 2016. The company is also seeking to negotiate rents with its landlords in an effort to keep more locations viable. Radio Shack hopes to remodel 100 stores this year and increase its supply of well-known national brands to reinvigorate its image and turn the struggling company around.

Negotiating lease agreements can be tricky. A haphazardly negotiated lease can cost a business money, make it difficult to get out of the agreement, and impose significant penalties if the lease is broken. Other issues may arise that must be addressed in the lease, and failing to do so may cause the business to be unfairly disadvantaged.

Fortunately, businesses and their owners can seek help from an attorney who understands the law and how to negotiate business disputes, including those involving leases. Sound legal representation during the planning process can put a business owner at ease that the company's best interests are protected and that future disputes may be avoided.

Source: The Dallas Morning News, "RadioShack CEO: Dispute slowing turnaround plans" Maria Halkias, June 8, 2014

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