The judge overseeing RadioShack's bankruptcy said he will approve the sale of about 1,700 stores to the chain's biggest shareholder.
Tuesday's decision ensures the survival of the 94-year-old electronics retailer, for now, and saves thousands of jobs that might have been lost if the stores were liquidated.
The buyer, Standard General, has said it plans to run the business in a co-branding arrangement with Sprint Corp.
During four days of sometimes contentious hearings in Wilmington, Del., bankruptcy court, creditors fought the company and each other over how much the stores were worth and how proceeds of the sale should be used.
Hedge fund Standard General was declared the winner of an asset auction last week with a bid worth about $145.5 million.
Creditor Salus Capital Partners had called the auction a sham and asked U.S. Bankruptcy Judge Brendan Shannon to reject the result.
RadioShack argued that Salus missed its chance to outbid Standard General, which the Fort Worth, Texas-based retailer said made the highest and best offer.
The judge said he was faced with two alternatives: liquidation or a sale as a going concern.
"The going-concern bid from Standard General is clearly economically superior to the liquidation bid even before taking into account the added and terribly important benefit of preserving over 7,000 jobs and saving a century-old American retailing icon," Shannon said.