Bankrupt RadioShack Corporation (OTCMKTS:RSHCQ) has went on auctioning the remnants of its retail business empire on Monday. Bidders got the first opportunity to procure the patents, leases and trademarks of RSHCQ and notch up the detailed names, addresses, email IDs and telephone numbers of a plethora of RadioShack customers.
Standard General Wins The Auction
The stakes are seemingly enormous for RadioShack. News reported by Bloomberg, it was revealed that one of RadioShack’s creditors – a hedge fund company called Standard General has won this auction. The approval or rejection of the net assets that are still hanging on would be decided by one federal bankruptcy court on Thursday. The retailer is a 94 year old. Standard General commented that it would try to keep up with the operations of the retail chain, though in far smaller scale.
As per the deals that are into limelight, RadioShack’s customer base comprising the most recent additions can be purportedly sold off. RSHCQ revealed that all available personal data has been referred to the company’s own asset class in the bankruptcy auction.
Customer Data Available
Hilco Streambank is an intermediary for RadioShack Corporation (OTCMKTS:RSHCQ). It mentioned lately that there are as many as 13 million email IDs, 65 million names of customers and myriad physical address files that are up for sale. There have already been two legal filings in attempts to block selling off customer data. There are chances that the bankruptcy court may not approve these deals; hence, Hilco Streambank is taking a cautious note of the scenarios and proceedings.
Legal Filings Against RadioShack
The premise of the filings is based on the explicit promise that RSHCQ had made to its customers previously that none of the customer data would be sold off. Ken Paxton (Texas’ attorney-general) had filed suit against RSHCQ on this regard; Tennessee’s attorney general followed suit, joining Texas’ objection. The court has come up with a ‘privacy ombudsman’ to deal with the sensitive issues pertaining to customer data.