Battery Plus stores may end up in hands of Radio Shack parent

A bankruptcy court judge has approved the sale of insolvent electronics chain Battery Plus Inc. to Leap Energy and Power Corp., a Canadian battery maker. The $5-million sale could pave the way for InterTan Canada Ltd., operator of the RadioShack Canada chain, to acquire the 65-store chain from Leap.

The Financial Post
February 28, 2002

Battery Plus stores may end up in hands of Radio Shack parent
Firm sold to leap energy
Hollie Shaw

A bankruptcy court judge has approved the sale of insolvent electronics chain Battery Plus Inc. to Leap Energy and Power Corp., a Canadian battery maker.

The $5-million sale could pave the way for InterTan Canada Ltd., operator of the RadioShack Canada chain, to acquire the 65-store chain from Leap.

Brent Meikle, president of Leap, has confirmed he is in negotiations to assign the Battery Plus leases to InterTan, which has 832 RadioShack stores across Canada and operates 58 stores for Rogers AT&T
Wireless. No deal has been signed.

The decision brought an end to a protracted battle for the remains of Battery Plus, which was put into receivership last November owing nearly $6.7-million to Laurentian Bank and $1-million to another secured lender, Domenick Bellesario.

The company's founder and former owner, Antoine Chahine Badr, tried to have the sale motion adjourned because he is seeking leave to sue court-appointed interim receiver Deloitte and Touche.

Deloitte arranged the sale of the troubled battery and electronics business to U.S.-based Winner International Corp. and Covington Capital Corp., the majority owner of Leap.

During numerous hearings over the last few weeks, lawyers for the secured creditors urged Justice James Spence to approve the sale because the business was running low on cash and owed more than $2-million to suppliers.

Deloitte closed close to a third of the retailer's locations before Christmas, a move Mr. Badr argued stripped the business of its value.

Lawyers for Deloitte countered Mr. Badr was trying to delay the sale of the business by trying to attack and discredit the receiver.

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