Systemax salvages CompUSA brand, website, and up to 16 stores

We're not sure how many people will be relieved by this news, but the few die-hard CompUSA fans out there can rest easy tonight, as the big box retailer will continue to live on as a ward of Ohio-based Systemax. According to Reuters, the TigerDirect owner will shell out around $30 million for the CompUSA brand, trademarks, e-tail business, and as many as 16 brick-and-mortar retail locations, although the particular sites have not yet been chosen. The acquisition -- which comes just a month after the company was sold to liquidation firm Gordon Brothers Group -- was justified by Systemax CEO Richard Leeds as being a good match for its Tiger Direct operation because he believes "the value of the CompUSA brand remains very high."

[Thanks, Quentin]

[Montusama @ Jan 7th 2008 1:45AM]

"the value of the CompUSA brand remains very high."
lol seriously?
yay first

[Neoprimal @ Jan 7th 2008 1:56AM]

Yes, seriously. I've had way more issues with Best Buy and Circuit City than I've ever had with CompUSA. So, though the name doesn't mean much to some, it means something to me and others like me. CompUSA was also one of those rare big box stores you could walk into and find the little things for a not-so-bad price....cases, psus, accessories and all that.

Tigerdirect is also a pretty great store. I'm wondering if they'll change the branding from CompUSA to Tigerdirect and what locations Systemax purchased.

[Ed @ Jan 7th 2008 6:20PM]

Yeah, compusa beats BB and CC with a baseball bat, always has. It's too bad, 'cause I hate TigerDirect with a passion.

[space_man3000 @ Jan 7th 2008 1:47AM]

I prefer CompUSA to Best Buy or Circuit City. But retail stores are no good any more, now that we have the internets.

[hooeezit @ Jan 7th 2008 2:48AM]

Retail stores potentially have a lot of value, if they were smart enough to exploit it. Many modern consumer electronics gadgets are plenty complicated with a user interface and lots of features. You cannot get a feel for that kind of complexity by looking at screenshots and 'user reviews' where most reviewers just say 'I took it home and it works great! This product is A+++'.

A very good idea would be to convert retail stores into museums of sorts. You will have to pay a small price to enter, but you can try out various new gadgets before you buy them. Then, if you want to buy it, you can either order it in the store for home delivery, or you can buy a unit on the spot, but at a premium. No need to keep large warehouses for continued stocks, and you build a great brand name by being consumer friendly!

Getting back to topic, I also think that CompUSA was a good chain of stores - much better than Best Buy or Circuit City. Too bad upper management has become synonymous with high level mismanagement these days.

[MichaelSF @ Jan 20th 2008 5:22AM]

That's right, the Net has changed everything. I think if a retail store is going to survive in this day and age, they better have something that sets them apart from online shopping, such as knowledgeable clerks to assist in a buying decision.

CompUSA has nothing to offer, IMHO. The San Francisco store used to have good help. You could find a clerk and they would answer questions and make recommendations.

About a month ago all a clerk could do when I needed help was to unlock the Nintendo Wii display so I could get a game I needed. She did not know which games were the Wii versions.

She stuck around though, but only to escort me to the front cashier to make sure I paid. [CompUSA policy, due to high incidence of theft, I guess, was that on removing a game from the locked cabinet for a customer, the clerk had to escort the customer to the cashier so to make sure the customer paid for the $49 Wii game.] Way to treat the customer [I was in a $1200 suit and carrying a briefcase.]

[Blake Bowen @ Jan 7th 2008 1:56AM]

I've bought from tigerdirect a few times. Generally good quality, good prices, and fast shipping. Just don't trust them with anything made out of glass. (4 scanners with identically broken mirrors)

[Neoprimal @ Jan 7th 2008 1:58AM]

You'd appreciate it alot more if you could walk in. I don't think they have the same 'know how' that real e-tail stores like newegg have when it comes to dealing entirely with online business.

[KnightRider @ Jan 7th 2008 1:59AM]

yeah. Tigerdirect. I would have been excited if newegg takes them over.

[Ed @ Jan 7th 2008 6:24PM]

Tiger WTF, Newegg FTW. Every time i purchase from the egg, it's always a great experience with no BS and fast shipping. Plus, they have more useful reviews than most sites.

[m @ Jan 7th 2008 2:20AM]

What a combination: just imagine, Tiger Direct's customer service standards and CompUSA's prices! Quick, somebody pinch me!

[Martin @ Jan 7th 2008 2:33AM]

So all the sales were for nothing? I wonder how long they will last!

[carson @ Jan 7th 2008 2:57AM]

"the value of the CompUSA brand remains very high."

And thats where you and most people disagree. And by most people, I mean those who have to shop there rather than an office supply chain.

C.

[Dale @ Jan 7th 2008 3:06AM]

WHY WON'T YOU JUST DIE?!?!?!?!

[Brad @ Jan 7th 2008 4:08AM]

Please for the love of god let the one near me die. My city has laws on the number of stores over 2000 sqft, and I would love to have ANYTHING else besides the dying CompUSA where it is now. Please please PLEASE STAY GONE.

[Paul @ Jan 7th 2008 9:14AM]

Now I am torn between wanting the store close to me to close so I can get in on the closing bargains and wanting the stores to stay open and possibly become a tigerdirect.com brick and mortar store...

[Ian @ Jan 7th 2008 9:37AM]

I bet they keep at least one of the Paramus New Jersey stores, since its pretty much the most important retail zip code in the country.

[The Aggie CEO @ Jan 7th 2008 11:15AM]

ooooooooooooh

that means the prices will be lower now..........

I can live with that............

now I wonder if one of those 16 stores will be in Greensboro, NC..........

[Ryan @ Jan 7th 2008 11:36AM]

CompUSA coulda survived on its own had it recognized its niche potential. Instead of competing with the big box retailers like CC and BB, they shoulda have become more like Frye's and catered to the hardcore crowd a little more. Becoming a B&M face for TigerDirect is a great move, but it's probably too little too late.

[JSM @ Jan 7th 2008 12:07PM]

I hope Tiger is happy charging sales tax at their online site in a bunch of new states. Odd decision.

[Michael Chastain @ Jan 7th 2008 12:56PM]

I'm not entirely sure how it works legally, but I think they can avoid charging sales tax in CompUSA states as long as they keep the divisions separate.

[Quentin @ Jan 7th 2008 1:54PM]

I knew this would happen. CompUSA is nothing but a brand now after this acquistion by Systemax. I never shopped via TigerDirect before, but their prices look good. I still don't get why they decided to keep some of them open. They should've realized that B&M tech is on the decline and need to focus more on their online operations, but some people do need their tech parts asap.

[snowglyder @ Jan 7th 2008 5:45PM]

Perfect combination! Both try to have lower prices based on rebates that you never get.

Excellent decision.

[DeFiantROA @ Jan 7th 2008 6:02PM]

The jacka#$ from TigerDirect finally get their chance of putting their grubby hands-on CompUSA. TigerDirect bought/merge with SystemMax to branch out their computer office division, and obviously the those beeaches from TigerDirect took over Systemax management and sucks the life out their employees. I had a co-worker who used to work at the Systemax office at Port Washington, Long Island NY. He would tell me all the ways they screw their customers by product, price, and even the rebates. On top of that, the management treat their employees like crap and kept raising their f---king sale goals throughout the year, which determine the bonus they bring home. Yes, I know about the how the Florida office look down at the employees living in New York..refuse to give them at New York salary to live on. No! You Floridian fu__ks. You are the greedy mother f^*&er.

My personal beef with them as customer is buying a brandnew laptop from them, then asking your fantastic tech support that I am missing the latest video drives for the laptop b/c I was stuck in 640x480. Having to return the laptop for your tech support to check it out, and then 3 months after (b/c you were relocated to Florida) receiving my laptop again with a note saying I need to ship the laptop out to California to have it fix by the manufacture. Wow, what service!?

[Bruce Carroll @ Jan 7th 2008 6:36PM]

Give me a Fry's and I would be content....Orlando Florida !!

[Doug @ Jan 7th 2008 9:56PM]

Goodbye, good riddance, stay away and don't come back. I started a personal boycott of CompUSA 5 years ago after (yet another) rebate didn't appear in my mailbox, and I was quite happy to hear of their soon-to-be-demise. I was just as happy to take some merchandise off their hands once their clearance sale started. The discounts don't begin to make up for the missing rebates, but it was a start.

[David @ Jan 8th 2008 12:01AM]

This actually seems like good news. If compusa has prices anything like TigerDirect, it'll be good.

[Alan DeRego @ Jan 8th 2008 12:55AM]

Try living in Hawaii. The local computer shops just can't compete with CompUSA's prices, and BestBuy/Circuit City just don't have what I need (power supplies, PATA drives (not all of us are on the serial train), cases, etc...)
It was nice to have CompUsa around for those items.
Yes the employees there were unaproachable if you had questions (heck I even answered a few customers questions because the employees were stumped or just giving the wrong scoops), But I always knew what I wanted there and left.

[CookyMonzta @ Jan 12th 2008 12:35PM]

Texas, Florida and Puerto Rico; that's where all of the 16 stores will be located. Basically, CompUSA will exist IN NAME ONLY. Those stores and the Web site belong to Systemax now. The soon-to-be-former headquarters in Dallas is probably on its way to vacating the building, along with its final and soon-to-be-former CEO Roman Ross.

[Reaper @ Jan 12th 2008 10:32PM]

I predicted that some company would buy a few stores and the CrapUSA logo with it. Those stores will market to the former CrapUSA die-hard customers so they have somewhere to buy their comp stuff. It was up for grabs and they found a buyer. Its an eerie thought to see that ugly CrapUSA logo in our neighborhood even though its not really CrapUSA anymore, UNLESS they keep the same employees. Equals = same tired service, same boring store, same computer-illiterate managers. :))

[MichaelSF @ Jan 20th 2008 5:21AM]

Well I have been using computers since 1984, back when a 5.25 floppy was a cool thing to have in one's binder.

CompUSA retail here in San Francisco was great before the Net took off. After that, the local store could not compete with online prices [which were tax free purchases too.]

Gradually I visited the local CompUSA fewer times a week [I used to go in there two to three times a week and always looked forward to their Sunday insert.] Eventually, my visits decreased to about once a month, and then in the last few years, maybe once every six months, if that.

I found online prices could not be matched. And the few times I went into CompUSA the service totally sucked. When I could get someone to help me, 99.9% of them did not know squat about what I needed to know.

With not-so-low prices and lousy service there was just no reason to go into CompUSA. I ended up doing my research on the Net and then shopping online.

Back in the day I spent a lot of money at CompUSA,but now spend it online. I probably spend about $30,000 a year on computers, software and electronics. So I don't know if my experience is that of a typical consumer and if my story can be used as an example of what went wrong with CompUSA, but just thought I'd share.

I guess there's still a market for brick and mortar computer stores, but don't count on me to be a customer. Actually, I much prefer to shop online rather than hassle shopping at a store.

[TrainManDan @ Feb 28th 2008 10:57PM]

Best Buy better than CompUSA? Come on. Yeah, maybe their prices are low. But the Customer Service is worth squat. Any savvy consumer knows you better not have a problem with a computer bought from Best Buy. I went to buy an HP laptop. I said I needed to be able to install Windows XP because the VPN for work doesn't support Vista yet. Clerk says not a problem, you can install XP. I ask if the drivers for XP are included. He says yes. I ask if he is sure. He says yes. I ask what if it doesn't work. He says I can return it, but if it boots up, there's going to be that damn re-stocking fee they charge.

I go to a PC that is net connected and look up the model on the HP site. It doesn't list XP Drivers. So I connect to the online chat. Support rep says that any consumer model HP computer that ships with Vista doesn't support XP, only the Compaq Business line supports XP. So I say forget it. I'll look elsewhere. Know what the clown Best Buy calls a clerk says? HP is wrong. So I say I'll take the laptop only under one condition, if XP won't install, I bring it back and no re-stocking fee. Know what he has to do? Get a manager. Know what the manager says? If it is in the box, it will work. I ask the manager if it comes with XP drivers. His response and this is a direct quote. "If they are in the box, they do." Does he know if they are in there? Nooooooooo. Can we open a box and look? Nooooooooo. Does it support XP? He doesn't know. Can he find out? Nooooooo. Can they waive the re-stocking fee if it won't support XP. No. And he asks "Why in the world would you want XP? Vista is so much better." I explain the situation about work and that the delay is because of all the issues with Vista, especially the licensing crap for enterprise installations (we have something like 15,000 client PC's). He wants to know what backward company I work for. I ask him if Best Buy upgraded all their PC's to Vista. He says no, but they are working on it, should be completed some time next year. I gave up and left. Best Buy better? Stop drinking the Koolaid.