CompUSA

Last updated
CompUSA, Inc.
Company typeSubsidiary
IndustryRetail
Founded1984;40 years ago (1984) (as Soft Warehouse)
Addison, Texas, U.S.
2018;6 years ago (2018) (as CompUSA.com)
Defunct2008 (2008) (original), 2012 (Tiger Direct relaunch), 2023 (2018 relaunch)
FateAbsorbed into TigerDirect (original)
Headquarters Miami, Florida
Products Electronics
Parent Specialty Equity (2007–2008)
Systemax (2008–2013)
Source Brands Group, LLC.
Website https://www.compusabusiness.com/

CompUSA, Inc., was a retailer and reseller of personal computers, consumer electronics, technology products and computer services. Starting with one brick-and-mortar store in 1986 under the name Soft Warehouse, by the 1990s CompUSA had grown into a nationwide big box chain. At its peak, it operated at least 229 locations. [1] Crushed by competition from other brick-and-mortar retailers, corporate oversight which was out of touch with evolving market realities, and a failure to make a strong transition to online sales, CompUSA began closing what they classified as "low performing" locations in 2006. By 2008 only 16 locations were left to be sold to Systemax. In 2012, remaining CompUSA and Circuit City stores were converted to TigerDirect stores, and later closed. As of 2023, the CompUSA online website redirects to an error page hosted on Wix.com. [2]

Contents

History

A CompUSA store in Santa Clara, California, circa 2005 CompUSA Santa Clara 2.jpg
A CompUSA store in Santa Clara, California, circa 2005

Founded in 1984 as Soft Warehouse in Addison, Texas, a northern suburb of Dallas, Texas, by Errol Jacobson and Mike Henochowicz, [3] the company began national expansion in 1988 with its first megastore opening in Atlanta, Georgia.[ citation needed ]

In 1991, the company's name was changed to CompUSA, and the company became publicly traded on the New York Stock Exchange. While under Nathan P. Morton's leadership, CompUSA grew to over $2 billion in revenues. Morton resigned in 1993. [4]

Formerly headquartered in Miami, Florida, [5] it was a wholly owned subsidiary of U.S. Commercial Corp S.A.B. de C.V. [6] associated with Grupo Carso and indirectly controlled by a common shareholder, Carlos Slim.

On December 7, 2007, an affiliate of the restructuring and disposition firm Gordon Brothers Group, Specialty Equity, bought the company. [7] Systemax purchased the CompUSA name, 16 retail locations and other company assets in January 2008. [8]

Systemax operated CompUSA retail stores in California, Florida, Texas, Maryland, Georgia, Illinois, Delaware, New Jersey, North Carolina, Virginia, Washington and Puerto Rico, as well as CompUSA.com, a retail website and a dedicated catalog site for businesses. [9] [10]

On November 2, 2012, Systemax announced that it would drop both the CompUSA and Circuit City storefront names, consolidating their businesses under the name, TigerDirect. On December 4, 2013, CompUSA intellectual properties were sold to JASALI 645 Realty LLC. [11] On October 25, 2018, the intellectual properties of CompUSA were leased to DealCentral, and has announced to relaunch CompUSA.com in that same day.

Timeline

Closings and sale to Systemax

Typical CompUSA store under liquidation Closing.jpg
Typical CompUSA store under liquidation

On or immediately before February 28, 2007, CompUSA retained the services of Gordon Brothers, a company that specializes in asset recovery and restructuring, for the purposes of closing 126 stores nationwide. [22] The closing locations were chosen based upon their overall performance, profitability, and proximity to competitors such as Best Buy, Fry's Electronics, Micro Center, and Circuit City. This first round of closings reduced the number of stores to less than half of its previous number.

During the liquidation process, the stores typically offered discounts starting at 5 to 30 percent off of retail prices, ending at up to 95 percent.[ citation needed ] Liquidation was completed on May 14, 2007.

On December 7, 2007, CompUSA was sold to Specialty Equity, an affiliate of Gordon Brothers Group. [23]

On January 6, 2008, a month after CompUSA was sold to liquidators, Systemax, Inc. (TigerDirect's then-parent company) announced its purchase of 16 CompUSA locations as well as the brand, trademarks, e-commerce business, and technical services.

Systemax also had announced that the eleven existing and three TigerDirect-branded retail stores that were under construction would be converted to the CompUSA brand over the spring of 2008. [24]

On November 2, 2012, it was announced that Systemax would drop both the CompUSA and Circuit City storefront brands by consolidating their businesses under the TigerDirect brand and website. That officially marked the end of the heritage CompUSA brand name as used by Systemax. [11] Customers of both businesses were informed via e-mail on November 7, 2012.

Online relaunch

In 2018, the CompUSA brand returned as an affiliate website, [25] though it later shut down.

As of early July 2023, CompUSA's website is offline and inactive at its original domain. [26]

See also

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References

  1. ↑ What happened to CompUSA?
  2. ↑ "CompUSA". compusa.com. Archived from the original on 2022-06-24. Retrieved 2022-06-15.
  3. ↑ Halkias, Maria (February 5, 2008). "CompUSA couldn't overcome obsolete practices". The Dallas Morning News. Archived from the original on February 8, 2008.
  4. ↑ "History of CompUSA, Inc". FundingUniverse. Retrieved 2016-07-19.
  5. ↑ "About CompUSA.com, Inc. Archived 2010-01-06 at the Wayback Machine " CompUSA. Retrieved on January 7, 2010.
  6. ↑ "Wright Reports Company Profile – US Commercial Corp SAB De CV". wrightreports.ecnext.com. Retrieved 2007-12-28.
  7. ↑ "CompUSA Bought by Gordon Bros Group To Close Stores". Market Watch. December 7, 2007. Archived from the original on June 7, 2011.
  8. ↑ Miguel Bustillo (March 22, 2010). "Systemax Gives New Life to Failed Brands". The Wall Street Journal . New York: Dow Jones. ISSN   0099-9660 . Retrieved October 21, 2011.
  9. ↑ CompUSA.com Retail Store Locator Archived June 5, 2011, at the Wayback Machine
  10. ↑ "CompUSA Retail 2.0 Store Updates". www.retail20.com. Archived from the original on 2009-04-19.
  11. 1 2 "Systemax to Cut Circuit City, CompUSA Brands, Exit PC Manufacturing". Archived from the original on 2013-11-05. Retrieved 2013-11-05.
  12. ↑ "Slim Family to Take over CompUSA; Microsoft Will Get a Stake in Deal". Wall Street Journal. 25 January 2000.
  13. ↑ "Telvista's History". telvista.com. Archived from the original on 2007-12-21. Retrieved 2008-01-20.
  14. ↑ CompUSA To Buy Good Guys Archived 2007-03-10 at the Wayback Machine . About.com. 2003-09-29.
  15. ↑ Laura Heller (September 5, 2006). "CompUSA names new CEO". DSN Retailing Today. Archived from the original on June 4, 2012. Retrieved October 21, 2011.
  16. ↑ CompUSA seeking buyer, paper says Archived 2007-02-23 at the Wayback Machine . CNN Money. 2006-09-13.
  17. ↑ "CompUSA Announces Realignment Strategy" (Press release). CompUSA. 2007-02-27. Archived from the original on 2007-09-30. Retrieved 2007-03-05.
  18. ↑ CompUSA Store Closings Archived 2008-10-13 at the Wayback Machine . C-Net. Retrieved 2007-12-14.
  19. ↑ "Systemax Announces Definitive Agreement to Acquire Selected Assets and Retail Stores From CompUSA". RedOrbit.com. 2008-01-06. Retrieved 2008-01-06.
  20. ↑ "CompUSA News: 12 Stores Already Open" (Press release). CompUSA. 2008-03-21. Archived from the original on 2008-05-17. Retrieved 2008-03-23.
  21. ↑ Ganapati, Priya (April 9, 2009). "CompUSA Comes Back from the Dead". Wired. Retrieved 2009-06-28.
  22. ↑ "Closing Stores". CompUSA. Archived from the original on 2016-03-03. Retrieved 2007-12-26.
  23. ↑ "CompUSA sold to Boston-based firm". Honolulu Star Bulletin. 8 December 2007. Archived from the original on 2007-12-10. Retrieved 2007-12-14.
  24. ↑ "Plano CompUSA store to re-open". Dallas News. 12 February 2008. Archived from the original on February 14, 2008. Retrieved 2008-02-27.
  25. ↑ Lee, Dami (October 25, 2018). "CompUSA resurrected as a sad affiliate deals site". The Verge. Retrieved April 15, 2021.
  26. ↑ "Home". CompUSA. Archived from the original on 2022-06-24. Retrieved 2022-11-22.

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