Carlos Slim's CompUSA folds

Mon10Dec2007

Carlos Slim's CompUSA folds

12:52 H | Topics: Business - Mexico - Money

Mexican billionaire Carlos Slim is called "El Rey Midas" in Mexico, as it seems as if everything he touches turns to gold. But that hasn't been the case with computer superstore CompUSA, which will fold after the Christmas shopping season:

As rumored last week, Carlos Slim Helu's U.S. electronics chain CompUSA Management Co. will close after the holiday. Liquidator and restructuring firm Gordon Brothers Group LLC agreed to purchase the assets of the troubled Dallas-based retailer, which closed half of its stores in February. No financial details were given, but Boston-based Gordon Brothers is expected to find a buyer for CompUSA's 103 store locations, e-commerce unit and its tech support business.

According to the Dealscape blog, over 100 CompUSA stores were closed in February. And while Slim and his guys chalk up the failure to competition from big box stores like Best Buy, anyone who's visited a CompUSA store lately can tell you that from the terrible customer service to the non-competitive pricing to its archaic website, this business lost its relevance a while back.

Via / Dealscape

Image via Tyler Durden's Imaginary Friend's Flickr page