CompUSA
| File:CompUSA logo.svg | |
| Company type | Subsidiary |
|---|---|
| Industry | Retail |
| Founded | 1984 (as Soft Warehouse) Addison, Texas, U.S. 2018 (as CompUSA.com) |
| Defunct | 2008 (original), 2012 (TigerDirect relaunch), 2023 (2018 relaunch) |
| Fate | Integrated into TigerDirect (original) |
| Headquarters | Miami, Florida |
| Products | Electronics |
| Parent | Specialty Equity (2007–2008) Systemax (2008–2013) Source Brands Group, LLC. |
| Website | www |
CompUSA, Inc. was a leading retailer specializing in personal computers, consumer electronics, and technology merchandise. Established in 1984 under the name Soft Warehouse, it expanded across the United States during the late 1980s, eventually becoming a significant big-box retailer with a peak of over 229 stores. The company faced mounting challenges from fierce market rivalry, outdated business models, and an ineffective shift to online retailing, which resulted in store shutdowns beginning in 2006. By 2008, only 16 outlets remained and were acquired by Systemax. In 2012, the remaining CompUSA and Circuit City stores were rebranded as TigerDirect before ultimately closing. As of 2023, the CompUSA website is no longer operational.
History
The company was founded in 1984 in Addison, Texas by entrepreneurs Errol Jacobson and Mike Henochowicz. Its national growth commenced in 1988 with the opening of its first megastore in Atlanta. In 1991, the firm adopted the CompUSA brand and became publicly traded on the New York Stock Exchange. Under CEO Nathan P. Morton’s leadership, revenues surpassed $2 billion before his departure in 1993.
CompUSA’s headquarters were located in Miami, Florida. It became a wholly owned subsidiary of U.S. Commercial Corp S.A.B. de C.V., affiliated with Grupo Carso and controlled by Carlos Slim.
On December 7, 2007, Specialty Equity—part of Gordon Brothers Group and focused on corporate restructuring—acquired CompUSA. Shortly after, in January 2008, Systemax bought the brand name along with 16 retail locations and additional assets.
Systemax managed CompUSA stores across various states including California, Florida, Texas, Maryland, Georgia, Illinois, Delaware, New Jersey, North Carolina, Virginia, Washington, and Puerto Rico. The company also maintained the CompUSA.com website along with a business-oriented online catalog.
On November 2, 2012, Systemax merged its CompUSA and Circuit City brands under the TigerDirect banner. By December 2013, ownership of CompUSA’s intellectual property transferred to JASALI 645 Realty LLC. In October 2018, these assets were leased to DealCentral with intentions to revive CompUSA.com.
Timeline
- 1986 – Opened first superstore as Soft Warehouse in Addison, Texas.
- 1988 – Expanded with a second location in Atlanta, Georgia.
- 1990 – Rolled out a prominent radio advertising campaign featuring the "P.C. Modem" character.
- 1993 – Introduced technical support services available onsite for customers.
- 1996 – Launched retail operations through CompUSA.com to enhance e-commerce capabilities.
- 1997 – Collaborated with Apple to establish “store within a store” sections dedicated to Macintosh computers; completed rollout at 57 stores by early 1998.
- 1998 – Acquired Tandy’s Computer City division under the leadership of former CEO Nathan P. Morton; created CompUSA Call Center Services division targeting OEMs and corporate clients.
- 2000 – Transitioned to private ownership under Mexican retail conglomerate Grupo Sanborns after purchasing an 85% stake.
- 2001 – Spun off call center operations as The Telvista Company.
- 2003 – Acquired The Good Guys!, expanding product range and market presence.
- 2005 – Converted select locations into megastores; closed all The Good Guys! outlets; introduced “CompUSA with Good Guys Inside” branding aiming to compete against Best Buy; launched customer loyalty program named The CompUSA Network.
- 2006 – Discontinued loyalty program due to concerns over customer retention; shuttered 15 underperforming stores; appointed Roman Ross—former Philip Morris executive—as CEO with focus on expanding home entertainment offerings; Grupo Carso explored options to sell CompUSA.
- 2007 – Implemented extensive restructuring including $440 million capital investment, closure of 126 low-performing stores, cost-cutting measures, and corporate reorganization under CEO Roman Ross; completed initial closures by May; acquired by Specialty Equity (a Gordon Brothers Group affiliate) in December.
- 2008 – Systemax Inc. acquired CompUSA’s brand name, trademarks, e-commerce platform, and up to 16 physical stores; finalized remaining store closures by March; AT&T purchased TechPro group; reopened a dozen locations; introduced 'Retail 2.0' concept integrating digital and physical shopping experiences at Miami’s Dadeland store.
Closures and Acquisition by Systemax
By February 28, 2007, CompUSA enlisted the expertise of Gordon Brothers, a firm specializing in asset disposition and corporate restructuring, to shut down 126 underperforming outlets across the country. These closures were determined by store performance, profitability metrics, and competitive pressure from market players such as Best Buy, Fry's Electronics, Micro Center, and Circuit City, resulting in a reduction of more than half of its retail locations.
During the liquidation phase, markdowns varied between 5% and 95%, with the process concluding on May 14, 2007.
On December 7, 2007, Specialty Equity, an affiliate of Gordon Brothers Group, completed the acquisition of CompUSA. Shortly thereafter, on January 6, 2008, Systemax, Inc., the parent company of TigerDirect, acquired 16 CompUSA stores along with the brand assets including trademarks, the online sales platform, and technical support services.
Systemax intended to rebrand eleven existing stores and three TigerDirect locations under construction to operate under the CompUSA name during the spring of 2008.
On November 2, 2012, Systemax declared its decision to merge the CompUSA and Circuit City retail operations into the TigerDirect brand and website, thereby retiring the CompUSA name. Customers were informed through email communication on November 7, 2012.
See also
Further reading
- "The Gutting of CompUSA" David Pogue, March 8, 2007, The New York Times
- "Retail 2.0 – A new Retailing Concept by CompUSA"
- CompUSA, Inc. History at FundingUniverse
External links
- Pages with broken file links
- Re-established companies
- American companies established in 1984
- Retail companies established in 1984
- Retail companies disestablished in 2012
- American companies established in 2018
- Retail companies established in 2018
- Internet properties established in 2018
- Defunct consumer electronics retailers of the United States
- Online retailers of the United States
- Defunct retail companies of the United States
- 2007 mergers and acquisitions
- 2008 mergers and acquisitions
- Defunct computer companies of the United States
- Defunct computer hardware companies
- 5
- Companies of the United States by year of establishment