Last week, hedge fund Standard General saved RadioShack from liquidation. The takeover of the crumbling electronics chain rescued 1,700 of RadioShack's 4,000 locations. But while Standard General secured the stores, it neglected to buy the brand name. According to The New York Times:
One immediate uncertainty is the RadioShack brand. Salus, the largest creditor, still owns the rights to the RadioShack name. Without a deal, the retailer has only six months left to use the often-mocked yet highly recognized moniker. Standard General said that it would try to buy the name, but that it was also open to calling the stores something new.
A new brand name may be just what RadioShack needs to achieve the turnaround it's been working toward. In fact, the weakness of RadioShack's name may have contributed to the 94-year-old company's downfall.
If RadioShack does rebrand, it won't be the marketer's first attempt at refreshing its image with a new name. In 2009, the company began calling itself The Shack in a short-lived marketing ploy that was heavily criticized and confusing for consumers.
So what's better: a dusty brand name or a new name that nobody knows at all?