Defunct computer and electronics retailer Circuit City is being
resurrected as an online retailer by Systemax, the parent company of
CompUSA and direct-market reseller TigerDirect.
Systemax, based in Port Washington, N.Y., acquired the rights to
CircuitCity.com for $14 million plus a percentage of revenues generated
by the site over the next 30 months.
"Circuit City is one of the iconic brands in U.S. electronics
retailing with a 60-year legacy. With the longstanding leadership of
our TigerDirect.com business and the growing contribution of our
CompUSA business acquired last year, we think Systemax is uniquely
positioned to best carry forward the great Circuit City brand in the
online space," said Richard Leeds, Systemax’s chairman and CEO, in a
statement.
Circuit City, once an electronics retail powerhouse, declared
bankruptcy last fall and completed its liquidation of retail assets in
February. The closing of Circuit City resulted in the loss of more than
35,000 jobs. The company’s failure also resulted in the shuttering of
consumer and small business IT support service FireDog, a service
created by Circuit City to compete against rival Best Buy’s Geek Squad.
The new CircuitCity.com carries electronic goods ranging from flat
panel LCD televisions to notebook computers to data networking gear.
Systemax says the site will feature low price goods, fast shipping,
24/7 customer and tech support, and user reviews and ratings of
products.
While demand for IT goods remains sluggish, Systemax is bucking the
trend with relatively healthy growth in consumer sales. In its recent
quarterly earnings report, Systemax reported sales grew 4 percent
globally and 21 percent in North America. Profits were up more than 14
percent, despite a 20 percent decline in business technology sales.
"Market conditions are challenging, but we are growing share and
attracting customers,” said Gilbert Fiorentino, chief executive of
Systemax’s Technology Products Group, in a statement. “We are
price-competitive and that's a necessary ingredient of success in our
business. This strategy enables us to build a long-term and loyal
customer base."
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