If you're planning on waltzing into a Target store and picking up a cellphone with a monthly plan, you only have until April 8th to do so. RadioShack, which operates Target Mobile in 1,500 Target stores, has come to an agreement with its fellow retailer to end the relationship, effective April 8, 2013. The duo says they're parting ways on amicable terms since they couldn't strike a new deal -- which they've been hoping to hammer out since October -- that would make the business profitable for each party. For those whose fancies are struck by pay-as-you-go solutions, Target's prepaid mobile business won't be affected by the deal.
[Image credit: Roadsidepictures, Flickr]
Show full PR textRadioShack and Target Dissolve Target Mobile Partnership
FORT WORTH, Texas, Jan. 14, 2013 /PRNewswire/ -- RadioShack Corp. (NYSE: RSH), today announced the end of its relationship with Target, where it helps operate Target Mobile in 1,500 Target stores, effective April 8, 2013.
The RadioShack and Target partnership provided RadioShack access to manage Target's post-paid mobility business, but RadioShack did not manage the prepaid mobility business or the wider range of accessories offered in Target stores.
Since October 2012, RadioShack had been renegotiating the terms of the relationship with Target to establish an agreement that would be profitable to both companies. At that time, RadioShack executed a termination notice that would allow the company to exit the Target business if an agreement could not be reached.
"In order for RadioShack to have continued this relationship, we needed to establish a new agreement that would be financially appealing to both companies," said Telvin Jeffries , RadioShack executive vice president, chief human resources officer, and general manager of retail services "Ultimately, we amicably agreed to dissolve the relationship."
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