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Print E-mail del.icio.us 29 comment(s) - last by Oregonian2.. on May 23 at 2:23 PM

Now we're bankrupt and filing Chapter 7, now we're not

West coast brick-and-mortar computer store PC Club announced new ownership last week, days after the company suddenly closed its doors and filed for Chapter 7 bankruptcy protection. A telephone interview with a PC Club store manager confirmed that all of the company’s 38 retail stores opened their doors again last Thursday, and resumed business as usual.

The chain’s sudden reopening can be attributed to its acquisition by Los Angeles-based capital firm NAOC Holdings, which purchased the company at the last minute on undisclosed terms.

PC Club’s two online stores, PC Club.com and ClubIT.com, reopened Thursday as well, appearing as if they never went down to begin with.

“Brick-and-mortar accessory computer stores are still a valued commodity in the US,” said NAOC Holdings spokesman Alan Hunter. “We know PC Club with its long history, quality technical service and computer accessory assortment will continue to have strong potential for continued business operations. A technology retail outlet is the next logical addition to our portfolio, and we expect this will be a mutually beneficial relationship.”

While the exact reasons as to why PC Club nearly went out of business are unknown, many stores have experienced a continual slide in sales over the past few years, as the bulk of computer parts purchases move to online stores and larger, Big Box retailers like Best Buy or Fry’s Electronics. Company insiders have long attributed a variety of company problems to the loss of its founder and visionary, Jackson Lan, who died at the end of 2005.

An anonymous PC Club employee confirmed that trouble was in the midst for several weeks prior.  He described a number of component manufacturers sending FedEx trucks to clear stores of inventory sold on consignment. Despite the signs, however, both the unnamed employee and several others said that they did not expect such a sudden closure, and anecdotal reports around the internet reveal that staff as high as the regional manager-level were unaware of the severity of the PC Club’s inner turmoil.

On the day of the bankruptcy announcement, repair technicians pleaded with customers to pick up their computers, as the liquidation process could tie up customers’ property for weeks or months. A commenter on Digg, who self-identified as a technician at a Southern California-area store, said that he and his coworkers contemplated taking customer computers home in order to safeguard them from the liquidation process, but ultimately decided against it.

“Our new relationship with NAOC Holdings will give us an opportunity to grow our market share and expand beyond the western and central U.S.,” said PC Club Senior Sales Manager Kim Chu. “In addition, we'll now have the ability to reorganize and to work on expanding our compelling product line.”



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It's the evolution of the market
By dflynchimp on 5/22/2008 12:36:25 AM , Rating: 5
I do nearly all my shopping on Newegg these days. Used to be I'd still go to Best Buy, Comp USA (R.I.P) and circuit city to compare prices, but after a while it became mostly moot point. the gas money I save from driving out to those places would negate any possible price advantage (usually none-existent to begin with.) The fact is that unless you're business is diversified like Best Buy (not only comp hardware but also many other appliances) you're going to have a hard time surviving the increasing convenience of the internet.

That, and the fact that these stores have got to start getting better tech people. I've personally fixed more computer problems for my friends than the Geek Squad ever managed, even tho I'm far from an expert. What's the point of having a tech consultation section if you're only going to hire mediocre or subpar people to staff them that end up giving your tech support a bad rep for not having actual know-how?

Not that I don't root for the old school brick and mortar. It's still fun to get out of the chair and walk around sometimes (even if only for nostalgia). But the market is evolving, and it ain't going to wait for nobody who's not pulling their weight.




RE: It's the evolution of the market
By blue7053 on 5/22/2008 1:36:46 AM , Rating: 1
I try to support my local B&M and will always pay +10% just to keep them in business. But there are not that many people 'rolling their own' these days. Ten years ago, you saved a lot of money if you built your own computer, but I can't save that much anymore. Then, you had to shop for pieces and go to PC Club to get a left handed, 20 hertz something to hold it together. There aren't enough guys around who require 'hands on' construction. Computers are becoming a commodity: buy it, break it, buy another one. I think it's the evolution of us.


RE: It's the evolution of the market
By xsilver on 5/22/2008 3:12:18 AM , Rating: 2
Here in australia, a not as mature market (internet buying wise) Our cheapest IT sources are still brick & mortar; even before shipping costs. There are about 2-3 privatley owned stores/chains in particular that are able to price everything 5-10% below anybody else. No one knows how they really do it but there are some wild rumors (nothing so simple such as tax though, they've been in business for 15 years). What is known is that 1st, they have the WORST websites ever, think 1000 products listed in bad formatting all on the 1 sheet! You cant buy anything online, only browse the catalogue.
2nd/ Either they dont stock a lot of products or they sell out too quickly, their most common phrase is "no stock" Its not a bait advertising program either because sometimes you will go in and they have everything, sometimes 8 of 10 components are out. Its frustrating as hell.
3rd: staff hardly speak any english let alone help you on what you want which leads to 4th: The lines are horrendous, it is possible to wait there at lunch in line for an hour only for them to say "sorry no q6600 left, last one sold out 2 hours ago". Its also very frustrating when someone in line is like "is the GTS better than the GT and what is the GTX?" they can spend 10 minutes holding up the line!

However, like bees to honey, this store operates with huge popularity just because of that 5-10% margin/discount. If stores like this still exist, B&M stores will never really die out.


By Adnoctum on 5/22/2008 4:13:52 AM , Rating: 2
Hooray for MSY! There is no doubt about who you are describing!

Interesting questions:
* How do they price below pure online retailers? Time machine?
* Where do all the eMails go? Because they certainly don't get answered!
* What is worse than trying to decypher their broken-English replies in person? Trying to decypher their broken-English replies over the phone! What joy.
* How tiny is it out the back of MSY Pascoe Vale (Vic) that they have to fill the front of the shop to the ceiling with printers/cases/monitors? The line often goes out the door and snakes down the footpath. And Clayton isn't much better.

Still, I love MSY. The fact they exists gives me a warm, fuzzy, hardware enthusiast feeling.


RE: It's the evolution of the market
By Noya on 5/22/2008 7:29:40 AM , Rating: 2
quote:
buy it, break it, buy another one


For the non-enthusiast who buys a new PC once every 3-5 years.


By Homerboy on 5/22/2008 9:18:02 AM , Rating: 3
which is 99% of the market you realize right?


By Oregonian2 on 5/22/2008 3:35:01 PM , Rating: 2
Building your own (at least for me) isn't so much for saving money, as such, but more to have built the system one wants to have with components one wants to have -- rather than the very limited choice one usually has within a single B&M builder store (or the biggies). One can probably get the processor one wants, and possibly the video card, but the rest will probably be compromised from the ones wanted, limited to the ones that particular store uses (which may be what one needs, but isn't what one wants -- the old bugaboo).


By afkrotch on 5/22/2008 1:02:17 PM , Rating: 2
My problem with Brick and Mortar is the lack of selection. I can go to Newegg and purchase anything available on the market for computer parts. Walk into a Best Buy or CompUSA and I'm lucky to get even 5% of what's available. Going to your mom and pop's computer stores ends up being you paying more for parts they order online anyways. So you might as well just cut them out.

I've never been to a PC Club, so I don't know what kind of selection they'd have, but I'm sure it's far from that of Newegg, Mwave, Fry's, etc's warehouses.

The only B&M shops that I could get such a selection was in Akihabara. But you would have to go through 10-15 stores to do that, which I didn't mind. That was part of the whole experience of the Electric Town.

There's just not enough computer savvy ppl in the states to open up a Costco style computer store.

Me, I always have ideas. I'd build a Costco style computer store. Everything is kept in the back. You just have a computer database you access to see if the part you want is in and whether it is in stock. You can create a listing of what you want, print it out, and take to the clerk to have it collected for purchase.

For the non-tech savvy, there are cubicles with consultants that will help you build a machine to meet your needs. After it's all setup, the customer puts a down payment, and comes back a few days later to pick up their new machine with an in-house fix warranty (bring it in and we'll fix it) for a year. Pay more for a better warranty.

Another set of stations for those who can help you upgrade your existing machine. They can tear apart your computer and give you options for upgrades. And the last set of stations for computer repairs.

I only see this working in large cities, as small cities simply wouldn't have enough customers to support the cost of operations. There's always the ability to have online sales. Since stores are in large cities, things are broken down into regions. Newegg has what? 2 warehouses? With my concept, you'd have a warehouse at every major US city.

Anyways, I'm rambling now.


By stephenfs on 5/22/2008 1:13:15 PM , Rating: 2
My dad loves these guys. He is a classic computer geek, who inspired me to be the same. I'll always remember how he bought an Apple II computer with an empty motherboard and bought all the chips separately to save money. He enjoys talking to the people that work there, who are very knowledgeable btw. When I go home I usually end up visiting there at least once a trip.


Glad to see someone bailed them out.
By bsd230 on 5/21/2008 11:54:51 PM , Rating: 3
I love PC Club, yes you can get stuff cheaper at Newegg, but in a pinch its the first place I stop locally. They are way better than Best Buy and other retail stores. I like the fact they carry OEM products to help lower the costs. From time to time they really have some pretty good deals. I hope they stay solvent. It will be a bummer to keep losing local brick and mortar stores. Pretty soon we'll either pay retail or have to wait 3-5 days. Unless you delete your savings by overnighting.




RE: Glad to see someone bailed them out.
By Noya on 5/22/2008 7:34:17 AM , Rating: 2
quote:
yes you can get stuff cheaper at Newegg


Yes, I recall stopping at PC Club for a SATA cable and a DVI-RGB adapter back in the day...$25, while Newegg was $10 shipped.


By TomCorelis (blog) on 5/22/2008 12:46:36 PM , Rating: 2
Cables are generally the highest-margin items -- a lot of companies use cables and accessories to subsidize their operations. When I worked there I was always uneasy about selling people $20 SATA cables...


By afkrotch on 5/22/2008 1:14:42 PM , Rating: 2
I have an APO box. I get seriously screwed on ordering cables. Back in the day when I ordered rounded IDE cables. $10 for a set of 4 rounded cables. Then add the $15 S&H. It was still cheaper than buying the rounded cables at PC World Cambridge UK. Damn British pound.


RE: Glad to see someone bailed them out.
By Oregonian2 on 5/22/2008 3:44:05 PM , Rating: 2
I have bought stuff at a local PC Club store, but haven't in a long time. They can have really good prices when things are on sale. But I got frustrated in that they'd usually be out of stock for those things I wanted such that it no longer was worth the trip there (even less so now with gas prices where they are) seeing as how I'd likely not get what I wanted. There's another big computer (parts) chain (not CompUSA) maybe 10~15 years ago that had the same problem before they went bankrupt. I guess they saved inventory money by not stocking much, but not having stuff in stock removed the reason to go there (I could order stuff myself, I don't need a B&M to act as an ordering agent for me). So they go bankrupt. A B&M needs to have enough capital to stock things, local stock is the only real advantage a B&M has over NewEgg and friends.


By Oregonian2 on 5/23/2008 2:23:13 PM , Rating: 2
P.S. - B&M's also have the advantage in terms of returns (assuming a good return policy) but that's only really important for spendy or large-bulky-heavy things which most PC "part" things aren't.


Club-IT
By JSK on 5/21/2008 11:34:30 PM , Rating: 2
I felt they were quite competitive in a lot of their online prices in comparison to newegg, zipzoom, mwave, you name it.

I have no loyalty to a particular e-tailer, prices is key for me. Just earlier this year I picked up a Q6600 G0 stepping there, cheaper than anywhere else.

I can't speak to the quality of their b&m stores, but online I had no complaints.




RE: Club-IT
By bryanW1995 on 5/22/2008 12:53:53 AM , Rating: 2
I bought my e6750 from clubIT after newegg's auto-gouger kicked in on launch day. Their service was comparable, I now regularly check their prices on items that I want.


RE: Club-IT
By InternetGeek on 5/22/2008 1:19:18 AM , Rating: 2
What is this NewEgg's auto-gauger? are they spiking prices automatically?


RE: Club-IT
By Inkjammer on 5/22/2008 1:25:45 AM , Rating: 2
More or less. Products with limited supply and high demand get their prices upped slightly to meet said demand. It's usually not much, and still cheaper than some other stores... but it's rather notorious on newly launched CPUs where the cost can go up 10 to 20%.

If you browse Newegg daily for high demand items you can see their prices fluctuate between a few dollars every day. Supply and demand at its finest.


RE: Club-IT
By snownpaint on 5/22/2008 10:11:06 AM , Rating: 2
MACY's, JC Pennys, and other companies that did sales through catalogs would ship two different catalogs to customers.. My grandmother who did allot of catalog shopping would have a catalog with higher prices, because she would buy from the catalogs.. The Catalogs at my house had lower prices to draw me to order from them..

I'm sure this same tactic can be used on e-commerce.. Even more so with cookie tracking..