PCM (formerly PC Mall) has agreed to purchase the TigerDirect brand as well as some other business to business assets from parent company Systemax for a total of $14 million in cash. The deal doesn’t include any of the company’s cash, accounts receivable, inventory or trade payables, PCM revealed in a press release.
TigerDirect was founded by Carl and Gilbert Fiorentino, Karlton Norman and Orlando Ramos in 1987 and acquired by Systemax in 1997. Systemax later went on to purchase the CompUSA brand in 2008, consolidating it into TigerDirect in 2012. During that time, Systemax also purchased the Circuit City brand (notice a trend here?), itself rolled into TigerDirect in 2012.
Systemax operated a number of TigerDirect-branded brick-and-mortar stores across the country and internationally over the years. Earlier this year, however, the company announced it would be closing all but three of its 34 retail stores. The remaining stores – its flagship retail space in Miami as well as another in Georgia and one in Puerto Rico – will be shutting their doors as per the PCM acquisition.
The Fiorentino brothers, meanwhile, ran afoul with the law in connection with their participation in an illegal scheme that netted more than $11 million in kickbacks and other benefits which they hid from shareholders. Specifically, Carl Fiorentino was sentenced to 80 months behind bars while the younger of the brothers, Gilbert, received a sentence of 60 months of imprisonment. Additionally, they were ordered to pay $3.06 million in restitution.
Thumbnail courtesy Chris Desrochers, Flickr