Now is not a good time to be selling a once proud franchise known as Radio Shack.
Circuit City in the U.S. is at the mercy of the liquidators and who’s to say that the same thing can’t happen in Canada.
InterTAN’s statement that bidders are active and will be formerly making proposals this Friday is no guarantee that it will take place. Let’s not forget they went under CCAA creditor protection in early November. That was a long time ago in the Internet age.
In its favour is the fact that The Source by Circuit City is performing somewhat O.K. It had a modest profit of about $5 million. That is saying something in a down economy.
But, let’s not forget that the economy is in poor shape and consumer confidence and spending are in a tailspin.
I do not see Best Buy/FutureShop buying The Source. What's in it for them, really? They have to take care of their own problems. I wonder if Hartco would be interested in this deal, on the cheap of course. Hartco had a retail presence for many years. In 2001, CompuSmart had 22 stores across Canada that produced annual revenues of more than $225 million.
But in January 8, 2007, Hartco decided to divest CompuSmart retail division because of issues with its Income Fund. It was later integrated into MetaFore, a system integrator that is part of Hartco’s empire. CompuSmart continues to offer products online at compusmart.com.
Could Harry Hart, the founder of Hartco and Canadian IT pioneer,
