Tandy Calls Off Computer City Talks

Tue., Feb. 20, 1996

From Staff And Wire Reports

Tandy Corp. said Monday it called off previously undisclosed talks to sell its unprofitable Computer City chain of 99 computer superstores to rival CompUSA Inc.

Tandy, one of the nation’s largest electronics retailers, declined to say why it ended the talks with CompUSA, which operates 95 similar superstores. The two are the only sizable nationwide retailers devoted primarily to personal computers.

Fort Worth, Texas-based Tandy now plans to work with outside consultants to make the five-year-old chain profitable, said spokesman Martin Moad. Analysts expect Computer City to post a 1995 operating loss of about $15 million on sales of $1.75 billion.

“Tandy needs to bring in people to make the right changes,” said Southcoast Capital analyst David Scott Karson. “The computer market isn’t growing at the same rate it was last year - but it will grow enough to help pull Computer City out.”

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Tandy Calls Off Computer City Talks

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