Rumors of CompUSA's demise have been running around the
Internet for the past couple of days, but official confirmation has finally
come down from the top. The company announced yesterday that it was acquired by
an investment firm and that all of the company's businesses and assets would be
Under the terms of the deal, ownership of CompUSA will be
transferred from Mexican billionaire Carlos Slim to the Gordon Brothers Group.
"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 of the Gordon Brothers Group.
"We worked long and hard with Gordon Brothers Group to
achieve a business solution that maximizes CompUSA's assets," said CompUSA
CEO Roman Ross.
According to Bloomberg,
the Dallas-based company has courted Circuit City, Micro Electronics and
Systemax to purchase closing retail locations and acquire business operations including
CompUSA TechPro, CompUSA.com and CompUSA’s technical services division.
CompUSA lost $45.7 million USD during Q3 2007 on revenues
$424 million USD. The company has not been able to battle losses despite cash
infusions of $2 billion USD and $440 million USD in 1999 and early 2007
Those looking to take advantage of reduced prices on tech
gifts for friends and family many want to head down to your local CompUSA -- if
you still have one left. The company's remaining 103 stores will remain open
through the holiday season and will provide steep discounts on all remaining
CompUSA, under the direction of Carlos Slim, took drastic
steps to turn around its business. The company closed
126 underperforming stores nationwide in February. "Based on changing
conditions in the consumer retail electronics market, the company identified
the need to close and sell stores with low performance or non-strategic, old
store layouts and locations faced with market saturation," said Ross in
Increasing competition from electronics
giant Best Buy, a reinvigorated Circuit City and retail
monster Wal-Mart left little room for error during CompUSA's restructuring
CompUSA has taken numerous hits over the years for its
business practices and its service. The company has also been nicknamed by many
techies as CompUSSR for its sometimes “shady” business practices. Most
recently, the company came under fire for its mail-in rebate promotions. The
Federal Trade Commission (FTC) stepped in and a more streamlined, paper-less
Internet-based system was introduced to aid consumers.