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Systemax adds the CompUSA brand to its empire

The downfall of CompUSA has been chronicled on DailyTech over the course of the past year. The news surrounding the demise of the company came to a head in early December when it was announced that CompUSA would close all of its stores during the opening months of 2008.

Earlier this month, DailyTech reported that TigerDirect was looking to purchase a few of the closing CompUSA stores in the Miami, Florida area. More evidence to support this claim came in the form of Wikipedia entries that had been created by none other than employees from CompUSA's U.S. headquarters in Addison, Texas.

That information is now official and Systemax, the parent company of TigerDirect, is indeed acquiring a number of CompUSA retail locations. Systemax will acquire 16 CompUSA locations, CompUSA's trademarks and will also acquire the CompUSA.com website and operate it alongside TigerDirect.com.

"Millions of loyal customers will come to the Systemax and TigerDirect family of businesses through this acquisition," said TigerDirect CEO Fiorentino said. "We anticipate hiring many experienced CompUSA employees, preserving hundreds of store management and sales positions and making us stronger and better in the process."

In addition, all existing TigerDirect stores will now be called CompUSA. "We have a terrific opportunity to continue the great CompUSA brand and establish a new heritage that will extend for generations to come," Fiorentino added.

The acquisition of CompUSA's trademarks and entities will cost Systemax an estimated $30 million USD.



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TigerDirect => CompUSA
By InternetGeek on 1/7/2008 11:35:23 PM , Rating: 2
For some reason I tend to reject the idea of TigerDirect changing its name to CompUSA. I think it will actually hurt them. CompUSA was an eroding name, TigerDirect's name was only growing.




RE: TigerDirect => CompUSA
By MADAOO7 on 1/8/2008 3:37:28 AM , Rating: 2
They are only changing their store names, not the entire company. $30M is a deal too considering the brand recognition CompUSA has. I also think if you are going to take a risk like this, you better separate it from TigerDirect.com so you don't tarnish your already established reputation. You can always rebrand it back later. Simply put, CompUSA is a recognizable name to a larger population. I'm not saying it represents good service or anything of the like, but I know if I were to call up my dad and ask him if he knows who TigerDirect is, he'd surely answer, "Tiger Who?". Mention CompUSA, and he'll know what you're talking about. Even amongst college students, I know 80% of my colleagues would have no idea what TigerDirect is. I think $30 Million makes this a good gamble, worst case you close the stores and ship the products back to TigerDirect.com's warehouses.


RE: TigerDirect => CompUSA
By diego10arg on 1/8/2008 12:15:55 PM , Rating: 2
What about TigerUSA or CompuDirect?

Whatever, I would prefer the brand as "Growing TigerDirect" rather than "Big-closing-and-small-reopening CompUSA". Maybe they could keep all the locations as TigerDirect and deliver what you buy from CompUSA.com there.

Either way 30M does not seem to be a huge amount when that includes 16 stores plus the brand name and the online site.

We will see.


RE: TigerDirect => CompUSA
By clovell on 1/8/2008 1:17:47 PM , Rating: 2
I've got to say I disagree. I haven't seen a fair deal on TigerDirect in years. The latest processors they have in stock are usually 5-6 months behind other retailers and their prices are 30-40% higher. Changing their name may allow them to shake the image of overpriced and late to the party.


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