Systemax Tuesday named David Sprosty the new chief executive of its Technology Products Group. He replaces Gilbert Fiorentino, who left the company last spring following allegations of financial improprieties.
Systemax said it has notified Gilbert Fiorentino, chief executive, Technology Products Group and director of the company, that it intends to fire him. Fiorentino has been placed on administrative leave.
Systemax Inc. posted a 12 percent increase in profit in the third quarter, on the strength of a 10 percent increase in consumer sales.
The company, owner of TigerDirect, CompUSA and CircuitCity.com, made a profit of $12.6 million on the quarter, up from $11.3 million the same time last year.
"CompUSA recently opened two new brick and mortar stores, with another planned to open later this month," CEO Richard Leeds said as part of the earnings announcement. "We have also signed leases for stores in several new markets that will open in the coming months, and we are continuing the conversion of our existing stores to our proprietary Retail 2.0 format."
The Circuit City brand, which the company bought out of bankruptcy earlier this year, has also helped Systemax's bottom line.
"Circuit City has successfully reactivated many of its former customers, and sales from CircuitCity.com contributed to our overall sales growth," Leeds said. "We remain very optimistic about the long-term possibilities for this valuable asset. As in the past, TigerDirect continues to be a market leader in the online retailing of computer and consumer electronics."
Circuit City's Web site was revived over the Memorial Day weekend, as Systemax relaunched CircuitCity.com as an online-only CE retailer. The new site retains the old one's logos, colors and fonts.
Systemax, the Port Washington, N.Y.-based parent company of TigerDirect, said it has entered into a definitive agreement to acquire selected CompUSA assets and stores. Completion of the transaction is subject to customary conditions and is expected to close during the first quarter. Under the agreement, Systemax will buy the CompUSA brand, trademarks and e-commerce business, and as many as 16 CompUSA retail outlets, according to the company. “We believe the value of the CompUSA brand remains very high. The company has a long legacy of value pricing, service and customer loyalty among consumers nationwide,” said Richard Leeds, Systemax
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