After its winning bid for RadioShack Corp.’s brand and customer data, Standard General LP is working with government officials to resolve concerns that it will protect shoppers’ privacy, people familiar with the situation said.
Standard General is in talks with the U.S. Federal Trade Commission, along with state attorneys general, according to one of the people, who asked not to be identified because the talks aren’t public. As of Friday, the firm believed it was close to coming to terms on the privacy issues, another person said. A hearing to approve the deal takes place Wednesday.
In winning the auction for the assets, the hedge fund beat out 16 other bidders, including Regal Forest, which owns rights to the name in Latin America; Delta Marketing, the company behind camera retailer 47th Street Photo; and Wonderland Investment Group, the owner of an eco-friendly bus manufacturer, the person said.
The sale of RadioShack’s customer data had drawn objections from 37 state attorneys general, who asked how a potential buyer might use the data and exactly what information is being sold. RadioShack, which filed for bankruptcy in February, previously agreed to mediate with the states to resolve their concerns.
The electronics chain is selling about 117 million customer records, with more than 66 million containing information related to shoppers’ physical addresses and 8 million associated with e-mails.
Standard General, which already bought hundreds of RadioShack store leases in March, agreed to pay $26.2 million for the bankrupt chain’s name and intellectual property. The New York-based firm declined to comment.