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CompUSA Stores Going Out of Business

By Lisa Baertlein,
Reuters
Posted: 2007-12-10 11:28:33
Filed Under: Tech News
LOS ANGELES (Dec. 10) - CompUSA, the computer and gadget retailer controlled by Mexican billionaire Carlos Slim, has been sold to a restructuring and investment firm that will close stores and sell some company assets.

CompUSA store
By Justin Sullivan, Getty Images

CompUSA, which plans to close its stores after the holidays, is also trying to unload its technical services business, CompUSA TechPro, and its Web site, CompUSA.com.


The new owner is Boston-based Gordon Brothers Group, which recently helped CompUSA sell under-performing stores.

The terms of the deal were not not disclosed. Dallas-based CompUSA said on Friday that active discussions are underway to sell its technical services business, CompUSA TechPro, its online sales operation, CompUSA.com, and select stores in key markets.

The chain's 103 retail stores will remain open and staffed during the holiday season, offering discounts on computer and electronics ahead of the planned store closures.

"An orderly and expedited wind-down and asset sale process is the best option for CompUSA and its creditors at this juncture," said Bill Weinstein, a Gordon Brothers principal who will be running CompUSA as its interim president.

"We worked long and hard with Gordon Brothers Group to achieve a business solution that maximizes CompUSA's assets," said Roman Ross, CompUSA's current chief executive, who will continue to serve the company in an advisory capacity.

Earlier this year, the company closed more than half of its U.S. retail stores in a bid to streamline operations and bolster margins at top-performing stores.

Friday's sale did not come as a complete surprise to industry watchers.

News reports have suggested that Slim -- who is among the world's wealthiest individuals -- was seeking to unload more of his interest in the company.

A spokesman for Circuit City Stores Inc. told Reuters on Friday that representatives from CompUSA approached his company about possibly taking over properties.

Goldman Sachs analyst Matthew Fassler said prior to the announcement of the sale that the closure of more CompUSA stores would be a positive development for rivals Best Buy Co Inc., Circuit City, Office Depot Inc., OfficeMax Inc. and Staples Inc.

Consolidation in the electronic retailing sector has resulted in intense competition as large companies such a Best Buy Inc and Wal-Mart Stores Inc. undercut smaller rivals such as CompUSA and Circuit City.

Reporting by Lisa Baertlein, editing by Leslie Gevirtz and Andre Grenon

Copyright 2008 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon. All active hyperlinks have been inserted by AOL.
2007-12-10 09:16:49
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Recent Comments

1 - 10 of 88
88 comments

southcalramin 02:04:09 PM Jan 11 2008

I am not surprised. The worst customer service.

JustinEMT990662 03:39:00 PM Dec 30 2007

You have to watch their close out sales prices too. i went into one on the 26th, and found a Western Digital MyBook 500GB external drive for about 140$ after discounts. Later that day I found the same thing in Target AND Officemax for nearly the same price. Seems like they hiked up the prices on popular items and then offered the discount. I would highly suggest before going in to buy items from them, that you research the going rate on the items you want and then do a comparison when you go in there. The deal may sound alot better than it actually is. Kinda reminds me of those dealerships where you trade in your car, they say they wil give you 2000$ trade in so you dont have to put any money down, but then they also increase the cost of the car you are buying by $1500

Trkdude067 04:44:00 PM Dec 10 2007

Customer support and Product Knowledge are the key to retail success. To ignore that means failure. Home Depot is next to fail.

MailMlists 03:47:46 PM Dec 10 2007

I'm sad to see CompUSA go, but I figured it would happen eventually.
I work on my own computers and My CompUSA USED to be a place where I could buy cables, connectors and other parts for whatever I happened to be working on.
Over time that area of the store has taken a backseat to selling big screen TVs and DVD players etc. (What was to be next appliances?)
For example, I needed an internal SATA cable (not a very exotic item) to add a bare drive I had purchased.
I could have ordered it on the Internet and had one in a few days, I went to CompUSA first thinking that would be my best bet to get one right away.
In the store, I looked high and low and nothing. Just their usual disorganized wall display. I looked for someone to assist me in finding it. Nobody in sight.
I went and stood over by the big screen televisions for a minute and two salespeople offered assistance. They weren't too happy that I asked them to look for a SATA cable, taking valuable time away from those big ticket c

MailMlists 03:47:34 PM Dec 10 2007

I'm sad to see CompUSA go, but I figured it would happen eventually.
I work on my own computers and My CompUSA USED to be a place where I could buy cables, connectors and other parts for whatever I happened to be working on.
Over time that area of the store has taken a backseat to selling big screen TVs and DVD players etc. (What was to be next appliances?)
For example, I needed an internal SATA cable (not a very exotic item) to add a bare drive I had purchased.
I could have ordered it on the Internet and had one in a few days, I went to CompUSA first thinking that would be my best bet to get one right away.
In the store, I looked high and low and nothing. Just their usual disorganized wall display. I looked for someone to assist me in finding it. Nobody in sight.
I went and stood over by the big screen televisions for a minute and two salespeople offered assistance. They weren't too happy that I asked them to look for a SATA cable, taking valuable time away from those big ticket c

Nordicman23 03:37:59 PM Dec 10 2007

Adios and Good Riddance !! Their employees were useless.