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TigerDirect

From Alfawiki
TigerDirect
FormerlyBLOC Development Corp. (1985-1987)
Company typeSubsidiary
IndustryRetail
Predecessors
Founded1985; 41 years ago (1985)
Founders
  • Gilbert Fiorentino
  • Carl Fiorentino
  • Karlton Norman
  • Orlando Ramos
DefunctTemplate:End date and age
FateCeased operations
Headquarters,
United States
Areas served
United States
Key people
Frank Khulusi (CEO)
ProductsComputer hardware, software, peripherals, gaming, electronics
ParentInsight Enterprises
WebsiteArchived official website at the Wayback Machine (archive index)

TigerDirect operated as an online retailer headquartered in El Segundo, California, specializing in electronics, computers, and related components. Formerly under the ownership of Systemax, a company recognized for acquiring the intellectual properties of defunct U.S. retail chains such as Circuit City and CompUSA, TigerDirect integrated these brands into its online platform following their closures in 2012.

After Systemax's North American online technology retail division was purchased by PCM Inc. in 2015, TigerDirect discontinued its physical retail locations. By 2019, the company also shut down its Canadian online operations.

The enterprise primarily concentrated on selling computer electronics through web and catalog channels, utilizing rebate-based marketing strategies to maintain competitive prices. Additionally, it maintained brick-and-mortar stores and catered to business clients through dedicated B2B sales.

History

Established in 1985 as BLOC Development Corp., the firm initially focused on publishing utility and application software titles, including its flagship product "FormTool," created by founders Frank Millman and Jorge Torres. By 1989, Tiger Software became a subsidiary under the publicly traded BLOC Development Corporation, which also oversaw BLOC Publishing and SoftSync divisions.

In 1991, with Gilbert Fiorentino at the helm, TigerDirect transitioned from software development to catalog-based sales; however, profitability remained elusive. The company was subsequently acquired by Global DirectMail (currently known as Systemax). In 1994, TigerDirect introduced smaller yet successful catalogs such as GraphicsExpress and Mac catalogs. After an unsuccessful acquisition attempt by Hanover House in 1996, ownership transferred to Systemax (NYSE: SYX).

Acquisition of CompUSA and Circuit City brands

On January 6, 2008, Systemax acquired the CompUSA brand along with its trademarks, e-commerce platform, and up to sixteen retail stores located in Illinois, Florida, Texas, and Puerto Rico. Later, on May 13, 2009, Systemax purchased the Circuit City intellectual property—including trademarks and domain names—for $14 million. Following this acquisition, the CircuitCity.com website was relaunched. By December 2012, both CompUSA and Circuit City were merged into the TigerDirect.com platform as part of a strategic decision to consolidate retail identities online.

Retail closures and acquisition by PCM

On March 16, 2015, TigerDirect declared it would close all but three of its retail outlets to concentrate efforts on online sales and business-to-business transactions. In Canada, six stores located in Southern Ontario were shut down, with operations shifting toward online fulfillment through Acrodex or PCM Canada. The remaining physical locations were situated in Jefferson, Georgia; Guaynabo, Puerto Rico; and Miami, Florida—the latter also functioning as the company’s headquarters. Additionally, the distribution facility in Naperville, Illinois was discontinued.

In November 2015, Systemax sold its North American Technology Group, including TigerDirect, to PCM Inc. for $14 million. This segment had accumulated $68 million in operating losses by late 2015, contrasting with Systemax's other profitable divisions. The transaction was finalized on December 1, 2015, transferring business-to-business client databases and intellectual property rights; the associated web properties were slated for handover by February 15, 2016. Subsequent to the sale, Systemax closed the remaining distribution centers and retail stores.

By the end of December 2015, TigerDirect began a clearance sale with a strict no-return policy as part of its transition to PCM ownership.

Website relaunch and subsequent shutdowns

TigerDirect’s electronics e-commerce site was relaunched on February 15, 2016, under the ownership of PCM Inc.. The redesigned TigerDirect.com offered a wide array of technology products aimed at both B2B clients and new customer segments through PCM’s marketing initiatives. PCM also operated TigerDirect.ca for Canadian customers until its closure in November 2019. By March 2023, TigerDirect had ended all retail operations globally, concluding its presence in the e-commerce market.

Federal Trade Commission decision

On November 4, 1999, the Federal Trade Commission found TigerDirect in violation of the Pre-sale Availability Rule, Disclosure Rule, and Warranty Act. Without admitting fault, TigerDirect consented to clearly disclose all warranty restrictions, promptly honor warranty commitments, and provide customers with warranty documentation before completing sales.

Trademark dispute with Apple

In early 2005, TigerDirect initiated legal action against Apple Inc., accusing it of trademark infringement related to Apple's use of "Tiger" for Mac OS X version 10.4. Although TigerDirect held registered trademarks involving tiger imagery and wording, Apple had obtained approval to use "Tiger" in 2003. After opposition proceedings and an emergency hearing in May 2005, the court ruled in Apple’s favor based on distinct trademark rights.

InfoWorld investigative report

In 2006, InfoWorld journalist Robert X. Cringely exposed that TigerDirect’s affiliate OnRebate.com employed rebate fulfillment practices involving "insufficient documentation" to limit payouts. Consumer grievances about rebate issues led to an inquiry by the Florida Attorney General and contributed to TigerDirect’s downgrade from a satisfactory rating by the Better Business Bureau. A former financial controller disclosed that this rebate policy was deliberate: customers who lodged complaints received checks while others were frequently ignored—thereby reducing rebate expenses.

Dell litigation

On April 17, 2009, Dell initiated legal action against TigerDirect, a former authorized distributor, accusing the company of selling obsolete and discontinued Dell products as brand new items accompanied by unauthorized warranties. The complaint also alleged that TigerDirect employed altered Dell logos and marketed third-party merchandise falsely represented as authentic Dell goods. These concerns came to light after Dell received customer requests for price matches associated with purchases from TigerDirect.

State of Florida lawsuit

On September 4, 2009, Florida's Attorney General Bill McCollum filed a lawsuit targeting TigerDirect, OnRebate, and their parent corporation Systemax due to failure in delivering promised customer rebates. Systemax highlighted that a comparable class action suit initiated in 2007 had been dismissed in August 2009. The company refuted the accusations made in the Florida case; eventually, the matter was resolved with a $300,000 settlement.

CBC investigation

In 2014, the consumer advocacy program Marketplace produced by CBC featured TigerDirect in an episode focused on manipulated online reviews. A customer who had posted a negative evaluation of TigerDirect’s service noticed that the review was altered prior to appearing on the company’s website. Despite numerous attempts to remove the modified review, the customer was unsuccessful until intervention by Marketplace.

Founders convicted of fraud

In 2014, Carl and Gilbert Fiorentino, senior executives at Systemax and brothers, were apprehended for orchestrating a $9 million kickback scheme involving directing over $230 million worth of business to an Asian supplier. Gilbert entered a guilty plea for conspiracy charges, while Carl admitted guilt to conspiracy involving fraud and tax evasion. Sentencing resulted in prison terms of five years for Gilbert and six and a half years for Carl. In 2016, both were ordered to pay $35 million in restitution to Systemax.

References

External links