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Business dissolution may create opportunities for other entities

The electronics chain RadioShack has been around for nearly a century. With stores in New Jersey and throughout the rest of the nation it is often a staple in malls. However, the retailer has weathered some hefty financial challenges as competitors have taken control over the booming personal electronics market.

Just recently management within the RadioShack hierarchy has announced that some of the company's stores will be closing. Unable to compete with Amazon, Best Buy and other popular physical and online retailers, RadioShacks throughout the nation will begin to disappear as the company begins the process of business dissolution. Several stores here in New Jersey will be closing their doors as well.

While it is not unusual for a company to shut down its businesses, the RadioShack closures in New Jersey have some in the business community anticipating an interesting event. Some believe that the closures of the RadioShack stores will create competition over the retail spaces vacated by the out-of-business outlets. Many RadioShack stores have been in the same locations for a long time and new businesses in those locations may mean better exposure for retailers looking to move in.

Some RadioShack locations may not be available, however. Bankruptcy may also be a part of the RadioShack wind down and some retail spaces may be included as assets in the company's bankruptcy filing. Those that are not could be subject to hot competition from those who want to occupy the RadioShack outlets' spaces.

Businesses open and businesses close. It is the nature of operating a company in the United States. Therefore, New Jersey businesses need to have a business plan as well as an exit strategy should things fall apart.

Source: The Record, "RadioShack's exit could trigger retail space grab in North Jersey," Joan Verdon, Feb. 4, 2015

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