CompUSA To Close

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[ Business]

Computer and gadget retailer CompUSA, controlled by Mexican billionaire Carlos Slim, has been sold to restructuring and investment firm Gordon Brothers Group.

Terms of the deal were not released. CompUSA said it is in discussions to sell its technical services business, CompUSA TechPro, its online sales operation, CompUSA.com and stores in major markets.

The company’s 103 retail stores will stay open during the holiday season and offer discounts on computer and electronics before the stores are closed. "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 told Reuters.

Earlier, this year, CompUSA shut down more than half of its stores in an effort to streamline operations and increase profits at stores that were doing well. "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. 

CompUSA started as software retailer Soft Warehouse in 1984. It began selling computers and took the CompUSA name when it went public in 1991 and purchased the Tandy Computer chain. Carlos Slim began buying shares in 1999 and took the company private in 2000 with an $800 million buyout.

CompUSA has been hurt by decreasing margins on computers along with competition from electronics retailers like Best Buy and Circuit City.

CompUSA To Close
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