RadioShack Corp., the iconic consumer electronics chain, was driven into bankruptcy because of a takeover scheme by hedge fund Standard General LP, according to a lawsuit by a committee for creditors who say they are owed more than $500 million, Bloomberg News reported yesterday. By delaying actions that might have preserved some of the chain’s value, Standard General allegedly sought to take over RadioShack at the lowest price possible. The creditors say that turmoil at the company last year, including an October loan transaction that paved the way for the hedge fund to win control, led to RadioShack’s February bankruptcy. The lawsuit targets Standard General, its principal investment officer, company lender Wells Fargo Bank and RadioShack’s former top managers, including Joseph Magnacca, the former chief executive.
