CompUSA to shut down stores

IDG News Service - Computer and electronics retailer CompUSA Inc. announced on Friday that it would start winding down its retail operations after being acquired by an investment firm, which is looking to sell the company's business and assets.

Gordon Brothers Group LLC is discussing with different parties the sale of stores in key retail markets and CompUSA's other assets, including the CompUSA.com Internet retail unit and the CompUSA TechPro technical support services business.

The retail stores that don't sell will be shut down, Dallas-based CompUSA said in a statement. The 103 stores will remain open during the holiday shopping season and provide heavy discounts on products.

The sale comes amid the financial struggles of CompUSA's parent company, Mexico-based holding company US Commercial Corp. SA de CV.

During the third quarter of 2007, the company reported a loss of $45.7 million on revenue of about $425 million. The company also reported losses the previous two fiscal years.

In February, CompUSA said it would shut 126 stores as part of a massive restructuring effort in which it received a $400 million cash infusion from an unnamed investor.

Carlos Slim Helu, the chairman of Grupo Carso SA, which holds a majority stake in US Commercial Corp., was looking to sell his share in the struggling retailer, according to The Wall Street Journal. The company approached rivals Circuit City Stores Inc., Micro Electronics Inc. and Systemax Inc. to take over the store and its operations, but no deal was struck, the Journal said.

Slim Helu, who also operates retail businesses in Latin America, poured about $2 billion into CompUSA since 1999, the Journal said. Slim Helu also held a 9.2% stake in Circuit City, but sold off his share after an unsolicited bid to acquire the company was rejected by Circuit City's board.