Technology retailer CompUSA has announced (MS Word format) a major structuring which will see the company closing 126 of its retail outlets over the next 60 to 90 days in an effort to focus more resources on its best performing locations and improve the company’s overall financial status.
The company operates about 225 stores throughout the United States and Puerto Rico, and is owned by Mexican billionaire Carlos Sim, recently ranked as the third richest man in the world.
“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 CompUSA CEO Roman Ross, chief executive officer. The company also says it will receive a Cah infusion of $440 million dollars, but doesn’t say how it got its hands on the money.
In late 2006, rumors began circulating that Sim was considering the sale of the struggling computer retailer, which has been posting regular losses in the face of strong margin pressure in hot technology areas like flat-panel televisions. But CompUSA is not the only tech retailer feeling the pressure: competitor Circuit City recently announced plans to close 70 stores, including eight “Superstores” in the U.S. and 62 under-performing international locations.