RadioShack filed long-expected bankruptcy papers after the markets closed Thursday.
The company, which was founded in 1921, aims to restructure under Chapter 11 rules. It filed its bankruptcy protection paperwork with a court in Delaware.
"Discussions are underway with interested parties to sell all of the company's remaining assets," the company said in a brief statement.
The former Main Street giant had suffered in recent years with the increase of online stores and larger retailers swallowing up its profits. The company reported almost a dozen quarters in a row of losses.
RadioShack chief executive Joe Magnacca said the steps "are the culmination of a thorough process intended to drive maximum value for our stakeholders."
General Wireless, its biggest shareholder, agreed to acquire as many as 2,400 U.S. brick and mortar stores. The ailing firm also said it has "agreed in principle" terms under which cellular giant Sprint can establish a new dedicated "store-within-a-store" retail presence in 1,750 of its locations.
In a follow-up statement, Sprint said it would take up around one-third of the retail space of each location. The stores, which would be co-branded with RadioShack and Sprint names, would sell smartphones, tablets, and plans on all Sprint brands, including Boost and Virgin Mobile.
"Sprint and RadioShack expect to benefit from operational efficiencies and by cross-marketing to each other's customers," Sprint chief executive Marcelo Claure said in remarks.
Any remaining underperforming stores will shutter.
According to Reuters' figures, RadioShack reported assets of $1.2 billion, with debts of $1.39 billion as of November 1.