MIAMI-Wireless retailer Let’s Talk Cellular and Wireless Inc. reached an agreement with a subsidiary of Nextel Communications Inc. to incorporate a substantial portion of Let’s Talk Cellular’s distribution network into Nextel’s operations providing additional points of contact for Nextel customers.
The deal calls for Let’s Talk to receive $32 million in cash for the operations associated with approximately 200 Let’s Talk Cellular stores where Nextel currently operates.
Let’s Talk said the transaction serves as the centerpiece for its plan to emerge from Chapter 11 bankruptcy protection in April and is supported by the company’s senior secured bank group, which is led by The Chase Manhattan Bank.
“This transaction will produce the best possible result for all of our constituencies consistent with our overriding goal of maximizing value through the Chapter 11 process,” said Brett Beveridge, chief executive officer and founder of Let’s Talk. “In exchange, our creditors will receive a recovery that should meet or exceed their expectations and most of our valued employees will have the opportunity to continue with the business.”
Let’s Talk owns and operates 240 stores in 21 states, the District of Columbia and Puerto Rico.
