What's about 2 Change???
December 2007
CompUSA buys ailing Good Guys: deal fulfills Mexican owner's hunger for U.S. CE chain
Oct 13, 2003 by Laura Heller
DALLAS -- Mexican billionaire Carlos Slim's retail empire is getting a little bigger with the acquisition of consumer electronics retailer Good Guys. Slim's CompUSA will actually purchase the 71-store chain for $2.05, or $55 million in cash.
Slim bought CompUSA in February 2000, and has since taken the retail company private. At the time of its purchase, CompUSA had seen two years of declining sales. Since the company went private, sales and earnings are no longer available, but ceo Hal Compton told DSN Retailing Today earlier this year that the chain is profitable and had sales of approximately $4 billion in 2002.
Getting the Good Guys profitable has been an uphill battle since the mid-1990s. The retailer has posted an annual profit in just one of the past seven years, ending the fiscal year 2003 on Feb. 28 with a net income of $1.1 million on the strength of a strong fourth quarter and much reduced operation expenses.
But the first two quarters of this year have not been so kind, in spite of continued cost cutting. For the first six months ended Aug. 31, Good Guys reported a net loss of $15.3 million, compared to a net loss of $6.4 million in the same period last year. And Good Guys' chairman and ceo Kenneth Waller expects negative comp-store sales to continue through the third quarter.
But Slim has been seeking to acquire a CE chain for CompUSA for some time, even making a bid for Circuit City with an offer of $1.66 billion after acquiring 9.2% of the company's stock. But Circuit City rebuffed its offer, sending CompUSA elsewhere. Circuit City's more than 600 stores would have given CompUSA greater scale and leverage as it tries to transform itself from a computer seller to technology store and Good Guys, with just 71 stores in California, Nevada, Washington and Oregon, is just a small step toward achieving that critical mass, and a light snack for a businessman who has made his fortune on buying flailing companies at a discount and riding them back up.
CompUSA has been transforming itself from a computer seller to technology superstore, bringing in an extensive selection of digital imaging products and accessories, handheld and wireless technology and is now rolling out full-fledged CE departments to 200 of its stores.
What does this mean for Little Rock Mac and PC users???
CompUSA buys ailing Good Guys: deal fulfills Mexican owner's hunger for U.S. CE chain
Oct 13, 2003 by Laura Heller
DALLAS -- Mexican billionaire Carlos Slim's retail empire is getting a little bigger with the acquisition of consumer electronics retailer Good Guys. Slim's CompUSA will actually purchase the 71-store chain for $2.05, or $55 million in cash.
Slim bought CompUSA in February 2000, and has since taken the retail company private. At the time of its purchase, CompUSA had seen two years of declining sales. Since the company went private, sales and earnings are no longer available, but ceo Hal Compton told DSN Retailing Today earlier this year that the chain is profitable and had sales of approximately $4 billion in 2002.
Getting the Good Guys profitable has been an uphill battle since the mid-1990s. The retailer has posted an annual profit in just one of the past seven years, ending the fiscal year 2003 on Feb. 28 with a net income of $1.1 million on the strength of a strong fourth quarter and much reduced operation expenses.
But the first two quarters of this year have not been so kind, in spite of continued cost cutting. For the first six months ended Aug. 31, Good Guys reported a net loss of $15.3 million, compared to a net loss of $6.4 million in the same period last year. And Good Guys' chairman and ceo Kenneth Waller expects negative comp-store sales to continue through the third quarter.
But Slim has been seeking to acquire a CE chain for CompUSA for some time, even making a bid for Circuit City with an offer of $1.66 billion after acquiring 9.2% of the company's stock. But Circuit City rebuffed its offer, sending CompUSA elsewhere. Circuit City's more than 600 stores would have given CompUSA greater scale and leverage as it tries to transform itself from a computer seller to technology store and Good Guys, with just 71 stores in California, Nevada, Washington and Oregon, is just a small step toward achieving that critical mass, and a light snack for a businessman who has made his fortune on buying flailing companies at a discount and riding them back up.
CompUSA has been transforming itself from a computer seller to technology superstore, bringing in an extensive selection of digital imaging products and accessories, handheld and wireless technology and is now rolling out full-fledged CE departments to 200 of its stores.
What does this mean for Little Rock Mac and PC users???
posted by arkietechs at 12:16 PM
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