Shortly after Circuit City announced plans to pay $284 million for Canadian electronics store operator InterTAN Inc., scrappy competitor Radio-Shack said it would terminate its licensing agreements with InterTAN, which operates 500 stores under the RadioShack banner. RadioShack cited nonpayment of a $55,000 annual branding fee. Taking the RadioShack moniker off the stores would have a costly and possibly disastrous effect. “Circuit City is entering a distracting, complicated acquisition that they can ill afford at this time,” says Citigroup's Smith Barney analyst Bill Sims.
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