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The consumer electronics store will run store-closing sales during the holidays to get rid of inventory.
December 7 2007: 7:18 PM EST
DALLAS (AP) -- Consumer electronics retailer CompUSA said Friday it will close its stores after the holidays following sale of the company to an affiliate of Gordon Brothers Group, a restructuring firm.
CompUSA operates 103 stores, which plan to run store-closing sales during the holidays.
Privately held CompUSA, controlled by Mexican financier Carlos Slim Helu's Grupo Carso SA, said discussions were under way to sell certain stores in key markets. Stores that can't be sold will be closed.
Gordon Brothers will also try to sell the company's technical services business, CompUSA TechPro, and online business, CompUSA.com.
Terms of the transaction were not disclosed.
Dallas-based CompUSA has struggled for nearly a decade with falling prices on personal computers, its most important product, and competition from big-box retailers such as Best Buy (Charts, Fortune 500).
Helu took the company private in 2000. The chain went through several CEOs and tried different turnaround strategies, such as a move this year to focus on core customers such as gadget users and small-business owners.
CompUSA closed more than half its stores this spring and got a cash infusion of $440 million to restructure.
During the wind-down, Weinstein and Stephen Gray, managing partner at CRG Partners, will run the company. The chain's current chief executive, Roman Ross, will serve in an advisory role, CompUSA said.
DJM Realty, a Gordon Brothers Group affiliate, will review leases of CompUSA's store locations.
CompUSA to close all of its 103 stores after holidays - Dec. 7, 2007
December 7 2007: 7:18 PM EST
DALLAS (AP) -- Consumer electronics retailer CompUSA said Friday it will close its stores after the holidays following sale of the company to an affiliate of Gordon Brothers Group, a restructuring firm.
CompUSA operates 103 stores, which plan to run store-closing sales during the holidays.
Privately held CompUSA, controlled by Mexican financier Carlos Slim Helu's Grupo Carso SA, said discussions were under way to sell certain stores in key markets. Stores that can't be sold will be closed.
Gordon Brothers will also try to sell the company's technical services business, CompUSA TechPro, and online business, CompUSA.com.
Terms of the transaction were not disclosed.
Dallas-based CompUSA has struggled for nearly a decade with falling prices on personal computers, its most important product, and competition from big-box retailers such as Best Buy (Charts, Fortune 500).
Helu took the company private in 2000. The chain went through several CEOs and tried different turnaround strategies, such as a move this year to focus on core customers such as gadget users and small-business owners.
CompUSA closed more than half its stores this spring and got a cash infusion of $440 million to restructure.
During the wind-down, Weinstein and Stephen Gray, managing partner at CRG Partners, will run the company. The chain's current chief executive, Roman Ross, will serve in an advisory role, CompUSA said.
DJM Realty, a Gordon Brothers Group affiliate, will review leases of CompUSA's store locations.
CompUSA to close all of its 103 stores after holidays - Dec. 7, 2007
