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Tandy to shed stores
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December 30, 1996: 5:46 p.m. ET
Retailer to sell Incredible Universe, close some Computer City stores
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DALLAS - Tandy Corp., responding to stiff competition and sluggish demand, announced plans Monday to wind down its Incredible Universe computer-store chain and close almost a fifth of its U.S. Computer City shops.
Fort Worth, Texas-based Tandy said it would take a $170 million charge in the current quarter to cover the moves, which come amid a slump in personal-computers sales.
Plans call for Tandy, a top U.S. retailer best known for its Radio Shack chain, to sell six of its 17 Incredible Universe stores to privately held Fry's Electronics Inc. for an undisclosed sum.
The firm plans to sell the remaining 11 sites to other parties for use as continuing retail operations, or for other real-estate purposes.
Tandy also intends to close 19 of its Computer City stores in the United States, while relocating two others.
Seven of the Computer City stores earmarked for closure are in the Los Angeles area, with three in or near Washington, D.C.
The remaining stores set for closure are in California, Maryland, Massachusetts, New Jersey, North Carolina, Ohio, Pennsylvania and Texas.
Stores set for relocation are in Illinois and Georgia.
While Tandy has continued to expand its 6,800-store Radio Shack chains through joint ventures, its Incredible Universe and Computer City operations have struggled.
Earlier this month, Tandy also announced plans to take an after-tax charge of more than $20 million to discontinue its 53 McDuff electronics stores in Texas and the Southeast.
From staff and wire reports.
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Tandy Corp.
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