Since RadioShack finally declared bankruptcy last month, the assumption has been that Standard General, a hedge fund that has lent the Shack large amounts of money for its failed comeback attempt, would win the bankruptcy auction. They would buy 1,700 or so of the stores that are left, along with RadioShack’s brand. Now a different lender has joined the bidding, but claims that the auction favors Standard General.

That other lender is Salus Capital Partners, one of the lenders that provided the Shack with some fresh batteries back in 2013 and stood against the chain closing a large number of its stores during its pre-bankruptcy decline.

The Standard General deal had the advantage of keeping a large number of stores open, and preserving about 9,000 retail jobs. Salus hasn’t said what their plans are with the Shack’s retail operations, but their teaming up with a team of liquidators indicates that they would be more likely to sell off the stores and fixtures and maybe keep the RadioShack brand going as an online retailer.

The final hearing about the different parts of what used to be RadioShack will be held tomorrow, at which time the court will approve (or not) the winning bids for different parts of the company. As we’ve shared before, other creditors are not super thrilled with Standard General’s status as almost-winners.

Bidding War to Determine RadioShack’s Fate [Wall Street Journal]

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