If you lived as long as RadioShack Corp (RSH) has, you’d probably say you had a good run. The 94-year-old electronics retailer is on its last legs, though the company said Monday it is nearing a bankruptcy deal that will sell half its store leases to Sprint Corp (S) and close the rest.

Shares sank further Monday on the news, closing at 24 cents, down 13 percent from the previous week.

RadioShack, which has reported losses for the past 11 quarters, is running out of cash fast. The Fort Worth, Texas-based company has fought off bankruptcy whispers since last year, when hedge fund Standard General LP stepped in with a rescue package that floated the company through the holiday season.

Since its beginnings, in 1921, as a mail-order electronic retailer, RadioShack has expanded into a formidable source for personal computers and other consumer electronics. The stores depend heavily on customer traffic, however, and the emergence of several cheaper and more convenient competitors has slowly eroded the company’s empire.

Next Generation

The advent of bargain retailers and e-commerce businesses stole market share away from Radio Shack, which since the 1980s had been a go-to destination for electronics. But its specialization in gadgets and computer accessories become the company’s downfall in the following decades, as mainstream electronics such as home theater equipment gained popularity and mobile phones started to dominate the tech market.

One major reason RadioShack buckled was price. Retailers such as Wal-Mart Stores Inc (WMT), offer the same home electronics at steep discounts. Wal-Mart stores are everywhere, and consumers have come to trust the retail giant because they know they can find the majority of Radio Shack’s merchandise there at a lower price.

Beyond its competitive advantages, the world’s largest retailer also has solid growth prospects. Eight analysts of 14 followed by Zacks have upwardly revised earnings estimates for Wal-Mart in the last 60 days, with five of those revisions coming in the last month.

The company has also invested heavily in expanding its business in Canada, completing its plan open 35 new supercenters in the region last month. Wal-Mart currently has a Zacks Rank #3 (Hold). (Read more: Wal-Mart to Open 11 Canada Units, Complete Expansion)

But even when RadioShack could compete on price, it never duplicated the convenience of online retailers such as Amazon.com (AMZN). Much like Wal-Mart, Amazon offers most of the same products that RadioShack does, with the added bonus of never needing to leave your house to shop.

The benefits for investors are obvious, as Amazon’s huge earnings beat demonstrated last week. With a growing array of options for customers who subscribe to Amazon’s Prime memberships, the perks of staying loyal to the online retailer are only improving.

By offering Prime to college students at discounted prices, Amazon is making sure it captures young consumers early, ensuring students replace a missing computer cable online instead of at the local RadioShack. Amazon currently has a Zacks Rank #3 (Hold). (See also: Amazon Shares Soar After Hours on Huge Earnings Beat)

Sprint Benefits

The other company that will immediately benefit from Radio Shack’s demise is Sprint. In the bankruptcy deal on the table, Sprint will take over the leases on half of the company’s stores. This would give the telecommunications company about 2,500 new locations.

Expansion is part of Sprint’s plan to stay relevant in a fiercely competitive market for mobile contracts. CEO Marcelo Claure told investors at a conference last month Sprint intends to increase its distribution significantly, and a bunch of old RadioShacks might just help him do that. 

Sprint delivered a hefty negative earnings surprise last quarter but has since made progress on its biggest drawbacks. It has modernized its network and poured funding into new deals for customers, which analysts expect to benefit the company’s top line in the most recent quarter. Sprint currently has a Zacks Rank #3 (Hold). (Read more: Is Sprint Corp (S) for Strong Q3 Earnings?)

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
RADIOSHACK CORP (RSH): Free Stock Analysis Report
 
SPRINT CORP (S): Free Stock Analysis Report
 
WAL-MART STORES (WMT): Free Stock Analysis Report
 
AMAZON.COM INC (AMZN): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research