Dive Brief:

• RadioShack on Thursday said that it will roll out its new store-within-a-store concept to more than 100 HobbyTown stores, which are largely in suburban markets.

• The electronics retailer last week announced a partnership with initial plans to place RadioShack concessions in 60 HobbyTown franchise store locations nationwide, according to a company press release.

• In January, RadioShack exited a second bankruptcy in two years, with its brick-and-mortar footprint severely diminished. 

Dive Insight:

This new relationship harkens back to a previous RadioShack strength. The retailer was a favorite of hobbyists who built their own computers from scratch, though many of their supplies are now obtained through online companies. Thirty-three-year-old HobbyTown has one of the largest fleets of hobby and toy retail stores in the U.S., with a growing emphasis on specialty toys and STEM products.

"We are excited about the HobbyTown partnership, as it will allow us to re-engage and directly serve our core hobby and DIY communities," Steve Moroneso, CEO of RadioShack owner General Wireless Operations Inc, said in the press release.

General Wireless filed for Chapter 11 protection in 2017 and immediately announced the closure of 200 RadioShack stores. More of its remaining 1,300 have since also shuttered, leaving the brand with 425 independent dealers, an e-commerce site (which has continued to operate) and an undisclosed number of company stores. 

Like so many retailers in a so-called "Chapter 22" situation (filing bankruptcy for the second time), RadioShack had been loaded with debt, which hampered any serious effort to turn itself around. Last year, however, RadioShack was thrown a lifeline by one of its creditors, which snagged its intellectual property as the sole bidder in its second bankruptcy auction.