InterTan Inc. (NYSE:ITN)said Tuesday that RadioShack Corp. wants to terminate the companies' advertising, licensing and merchandising agreements in the wake of InterTAN's recent decision to sell out to Circuit City.

InterTAN said it has received cancellation letters from RadioShack, and said that the Fort Worth, Texas, company has also filed a lawsuit to terminate the agreements.

Based in Barrie, Ont., InterTAN operates the RadioShack stores in the Canada.

"The letter from RadioShack stated, as grounds for such termination, that InterTAN has not paid a $55,000 annual fee under the advertising agreement for 2004, which amount has not yet been invoiced by RadioShack," InterTan said in a release.

"InterTAN believes the notice is invalid, and intends to vigorously contest the purported termination of these agreements," the company said.

The agreements in question were due to expire in 2010.

U.S. electronics retailer Circuit City said on March 31 will pay $371 million to buy InterTAN Inc. Circuit City, which has a network of 599 stores throughout the U.S., will pay $14 US cash per share for InterTAN.

Provided the deal goes through, Circuit City plans to introduce InterTAN's private-label products into its superstores by the autumn of 2004.