It’s the end of a retail era: after 23 years, computer and electronics seller CompUSA has been sold to Gordon Brothers Group LLC, a global restructuring company that specializes in carving up companies and selling off their assets. Although CompUSA’s current 103 locations will remain open for business through the end-of-year holiday season, CompUSa will wind down after that, shuttering retail operations and selling off stores and service businesses. Financial terms of the takeover were not disclosed; CompUSA will be run by Gordon Brothers principal Bill Weinstein, although current CompUSA CEO Ramon Ross will stay in an executive advisory capacity during the shutdown.
CompUSA’s retail operations have been struggling against big-box retailers like Best Buy, Fry’s, and Wal-Mart in recent years, along with online competitors like Amazon.com and Newegg. The chain shuttering half its retail stores and received a $440 million cash infusion in early 2007 in a bid to return to profitability, but those steps obviously weren’t enough to save the company.
“An orderly and expedited wind-down and asset sale process is the best option for CompUSA and its creditors at this juncture,” said Weinstein, in a statement. “We are focused on assuring that CompUSA’s creditors, landlords, and other key constituents are treated properly during this process. We are working hard to achieve the maximum recovery possible for the company’s constituents while also minimizing unnecessary expenses. We will actively communicate with the various parties and their advisors starting today, and in the days and weeks ahead.”
In the meantime, the company plans to blow out its inventory, which may make for some attractive holiday shopping for electronics fans: the company promises “attractive bargains” as part of store closing sales.
Gordon Brothers is in discussion to sell stores in key markets, and plans to continue operating CompUSA TechPro (the company’s technical services business) and the online retail operation at CompUSA.com until any buyers can be lined up. the failure of CompUSA represents a rare setback for Mexican billionaire businessman Carlos Slim, who has had indirect control of the company since 2000 and had been investing significantly in its operations.
