CompUSA closing more than 50% of its stores

[Ryan]

As announced on its website, CompUSA will be closing 126 of its 225 stores. The company also admitted to cut cost on its operation.

The company operates in US and Puerto Rico. This is bad for global competition and economics of computer technology in general, but definitely good for neighboring consumers who could probably expect some good buys in big sales from nearby CompUSA stores.

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[x-man]

Is that brought about by the "China Phenomenon"? A number of companies are re-locating to China where operating cost is cheap.

[Ryan]

I guess not. There was no announcement made that they are going to relocate or so.

They really are just cutting costs.

[Hope]

Probably the reason for big companies such as CompUSA for doing these methods because of the overextended practice, because close monitoring of those different sites is difficult, their management has the fault here.

[Ryan]

They could always backtrack of the faults and blames. But hopefully, closing some of their major stores will do them good.

[mini_0]

why , were they not making profits ? CompUSA said in a statement it would close 126 of its stores and would receive a $440 million cash capital infusion, but it was not specific as to the source of the cash. The company also said it would cut costs and restructure. The company operates 225 stores, which its Web site says are located in the United States and Puerto Rico.
Now this one does sound like not so explanatory or can we say suspicious and not so clear as to what is the reason ?