DailyTech - TigerDirect Eyes Remaining CompUSAs

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IT TigerDirect Eyes Remaining CompUSAs
Kristopher Kubicki (Blog) - January 4, 2008 10:58 AM

23 comment(s) - last by wonderhat7.. on Jan 17 at 7:49 PM

Wikipedia IP addresses and leaked memos indicate TigerDirect has some big moves for 2008

CompUSA and TigerDirect have always been unusual bedfellows. Both faced serious inquiry by the U.S. Federal Trade Commission and respective Better Business Bureaus over botched rebate promotions. Just months later, in 2006, CompUSA outlined its plan to reduce some of its brick-and-mortar presence. Just one year later, the chain announced it would close 126 of its stores.

After this first set of closures, TigerDirect began purchasing select CompUSA locations, mostly across Chicago. Local Chicago rival CDW also capitalized on CompUSA's uncertain future, building new retail locations just blocks away from marked CompUSAs.

Gordon Brothers Group, the liquidation firm handling the closure of KB Toys stores, acquired the remaining 103 CompUSA locations on December 7, 2007. The next day, the company announced it would close its doors for good in 2008, just after the holiday buying season.

Immediately after, sources close to TigerDirect and CompUSA relayed a flurry of memos between the two companies and a third company, DJM Realty, discussing terms for large-scale purchases of CompUSA property. DJM Reality, as it turns out, is owned by Gordon Brothers Group and handles the firm's real estate liquidations.

Neither company seems bashful about discussing the new retail locations. On January 3, 2008, the IP address 198.22.121.110 added the following entry to Wikipedia under TigerDirect.

In late December of 2007, Tiger Direct bought out a select number of CompUSA's stores near their Miami location. CompUSA's Deerfield Beach store has been confirmed as one of those locations.

At the time of publication, 198.22.121.110 resolved to chaos.compusa.com, an IP address that routes through Addison, Texas. CompUSA's headquarters resides in Addison, Texas. Wikipedia recognizes this address as the proxy server for CompUSA.

Before the Gordon Brothers acquisition on December 7, 2007, the same IP made various entries in Wikipedia regarding the impending closure of its stores. Two days later, some of these entries were verified by Gordon Brothers.

Is TigerDirect poised to take over the remaining CompUSA stores? It seems all but official that Tiger will acquire at least some of the CompUSA brick-and-mortar stores, as it did in the past. The only question at this point remains, "How many?"

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Makes Sense

By AlvinCool on 1/4/2008 11:36:39 AM , Rating: 2

The type of customers is the same. Buying the best locations then putting the same type of merchandise with an even better selection makes good sense. The major plus for Tigerdirect will be the ability to offer their web sales without shipping if the customer wants to wait a few days, and usually they will. It will dominate other stores for PC parts. I mean sure Best Buy offers parts, but nothing like Tigerdirect. So all they would have to do is stock what Bestbuy stocks, and offer tons more virtually. Doing that would ensure they make money if they take the best locations. Frankly it's like shooting fish in a barrel.