PCM acquires Circuit City consolidator TigerDirect for $14 million

pcm acquires circuit city consolidator tigerdirect for 14 million tigerdirectcanada
As an apparently affordable means of staying relevant, direct marketing company PCM, Inc. has purchased TigerDirect in addition to a handful of business assets from TigerDirect’s parent company Systemax. The acquisition will officially close on December 1, 2015, costing PCM a total of $14 million. The deal is quite limited, and doesn’t give PCM the rights to any of Systemax’s cash, accounts receivable, inventory, or trade payables.

For those unfamiliar, TigerDirect is a consumer electronics retailer that, as its name suggests, sells products directly to the customer through its website and catalog. Toward the end of Circuit City’s lifespan, the former electronics storefront giant was absorbed into TigerDirect after being purchased by Systemax in 2009, interestingly enough for the same $14 million price tag.

Systemax had opened a sparse total of thirty-four brick-and-mortar TigerDirect retail stores scattered across the country. Only three are still open today, and the PCM acquisition requires that this retail remnant — comprised of the flagship location in Miami and stores in Georgia and Puerto Rico — be shut down as part of the deal.

The sale isn’t exactly surprising considering the recent legal problems of TigerDirect’s founders. The two brothers who pioneered TigerDirect were convicted of bribery (involving over $11 million) and other illegal practices that they concealed from shareholders. The older of the two, Carl Fiorentino, was sentenced to 80 months in prison, while younger brother Gilbert Fiorentino will spend only 60 months in the big house, and they were both required to pay back $3.06 million in restitution.

This news comes less than a month following PCM’s acquisition of Canadian IT solutions provider Acrodex for 16.5 million Canadian dollars, or about $12.4 million in American money. In a world where companies like Amazon offer the same products with faster and cheaper shipping options, it’s no wonder PCM needs to find new ways to keep its business fresh. So, when all the other retailers run out of stock of the latest amiibo, you can be certain we’ll all flock to TigerDirect to buy it for a few dollars more than the going rate.

Features

Netflix’s latest price increase heralds the end of streaming’s golden age

Netflix’s recent price rise is just the latest in a string of signs that streaming’s golden age is nearly over. As more services enter the fray, content will be further partitioned, signaling the end of streaming’s good old days.
Business

Apple banned from distributing some iPhone models in Germany

Apple is following the FTC's lead and has sued Qualcomm for a massive $1 billion in the U.S., $145 million in China, and also in the U.K., claiming the company charged onerous royalties for its patented tech.
Product Review

LG Gram 14 proves 2-in-1 laptops don’t need to sacrifice battery for light weight

The LG Gram 14 2-in-1 aims to be very light for a laptop that converts to a tablet. And it is. But it doesn’t skimp on the battery, and so it lasts a very long time on a charge.
Gaming

You're never too broke to enjoy the best free-to-play games

Believe it or not, free-to-play games have evolved into engaging, enjoyable experiences. Here are a few of our favorites that you can play right now, including Warframe and the perennially-popular League of Legends.
Music

Tidal faces legal jeopardy over fake stream numbers accusation

In another challenging chapter for music subscription service Tidal, Norwegian authorities have begun a formal investigation into charges that the company faked millions of streams for artists such as Kanye West and Beyoncé.
Deals

Best tax software deals from TurboTax, H&R Block, and more

Do you dread doing your taxes? Luckily for you, there are plenty of tax software options available to guide you through the process. And guess what? Some of them are even on sale today! Check out deals from TurboTax, H&R Block, and…
Business

Cathay Pacific messes up first-class ticket prices — again

A couple of weeks ago, an error on Cathay Pacific's website resulted in first-class seats selling for a tenth of the price. On Sunday, January 13, the airline made the error again. The good news is that it'll honor the bookings.
Emerging Tech

Drones: New rules could soon allow flights over people and at night

With commercial operators in mind, the U.S. government is looking to loosen restrictions on drone flights with a set of proposals that would allow the machines greater freedom to fly over populated areas and also at night.
Cars

Some of Volkswagen’s electric models will wear a ‘Made in the USA’ label

Confirming earlier rumors, Volkswagen has announced it will build electric cars in its Chattanooga, Tennessee, factory. The facility currently produces the Passat and the Atlas. Production will start in 2023, Digital Trends can reveal.
Home Theater

Not chill: Netflix is hiking prices across all its tiers

Netflix has to get the billions of dollars it's spending on new content from somewhere. The streaming giant announced price hikes across the board, raising its monthly rates between $1 and $2 per tier in the next few months.
Movies & TV

NBCUniversal will launch its own streaming service in 2020

NBCU is prepping a streaming service filled with its original content for a debut sometime next year, meaning that Michael, Dwight, and the rest of the Scranton crew might be moving to a new home.
Mobile

Benchmark results show Snapdragon 855 destroys previous-generation chip

Almost exactly a year after the launch of the Snapdragon 845, Qualcomm took the wraps off of its next-generation mobile platform, the new Snapdragon 855. The new chip puts an emphasis on A.I. performance.
Mobile

Apple’s iPhone battery offer was reportedly way more popular than expected

As many as 11 million iPhone owners reportedly made use of Apple's cheaper battery replacement offer that launched in 2018 in response to the iPhone throttling debacle — some 10 times more than the company had apparently expected.
Home Theater

Cord-cutting has grown by 48 percent in 8 years, according to Nielsen

People are continuing to ditch cable but not all cord-cutters are the same. In fact, there are two distinct groups within the cord-cutting universe, with a very small, yet growing third group that's worth paying attention to.