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CompUSA going out of business after holiday season
By Neel Trivedi, Staff Writer
A vacancy in the Collin Creek Village VI might mean an unfortunate end for CompUSA, located at 721 Central Expressway, but Plano economic developers say one retailer’s end marks the beginning of another.
Sally Bane, executive director of Plano’s Economic Development, said should CompUSA in Plano close, there should be no problem in finding another retailer to occupy the 30,393-square-foot space.
“The store is located in a strong retail market,” Bane said. “Those are the kind of spaces retailers look for. It won’t be hard at all to find a new tenant.”
Gordon Brothers Group, a restructuring firm based in Boston, specializes in a wide range of assets, including retail and consumer products, and real estate.
In a written statement, the company announced its plans to sell select stores, with the buyers having the option to retain the CompUSA brand name. CompUSA.com, the company’s online component, will also be up for sale. The remaining stores will be closed down after the holidays. Financial details regarding the deal have not been disclosed.
For now, CompUSA will be run by Bill Weinstein, a principal at Gordon Brothers, and Stephen Gray, managing partner at CRG Partners, a restructuring firm.
In a statement, Weinstein said, “An orderly and expedited wind down and asset sale process is the best option for CompUSA and its creditors at this juncture. We are focused on assuring that CompUSA’s creditors, landlords, and other key constituents are treated properly during this process.”
CompUSA started out as a software seller known as Soft Warehouse in 1984. In 1991, it went public with the CompUSA name, expanding its merchandise to hardware, computers, and other electronics.
Just a few years later, however, strong competition from other electronic retailers such as Best Buy and Circuit City and sellers and buyers exchanging electronics online at cheaper rates, started the struggle that would eventually bring the company to an end.
The struggle affected CompUSA located in Plano as well. Plano’s Economic Development listed 500-899 employees in 2002 when the store first opened in Plano. The number has currently gone down now to 50 employees.
Last July, www.changewave.com reported that CompUSA fell to an all-time low of 5 percent in a survey that asked customers what stores they prefer to shop at for home entertainment and computer/networking products. In the third quarter of this year, the company reported a loss of $45 million as reported on www.pcworld.com.
Weinstein said communication regarding the acquisition is on with various parties and their advisors and will continue “in the days and weeks ahead.”
Clearance sales will run during the holidays at all CompUSA stores, including the one at Plano, located at 721 Central Expressway in Collin Creek Village VI.
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