Retailer buys 251 stores in Mexico seven years after it was bought out. Retailer Grupo Gigante will return to the electronics business with its purchase of Radio Shack stores in Mexico.
It announced yesterday it will buy Radio Shack’s 251 Mexican stores for US $31.8 million through its subsidiary Office Depot de Mexico. The stores generated sales of 1.7 billion pesos (US $115 million) last year. Gigante ran the Radio Shack stores in Mexico from 1992 until 2008, when the United States-based Radio Shack Corp. bought out its joint-venture partner. In February, Radio Shack filed for bankruptcy.
Gigante said it had the experience of successfully operating the business until 2008 and is aware that changes in the business model will be necessary. The firm said it will act quickly to put a new strategic plan into place. The sale will require regulatory approval in Mexico and confirmation by a bankruptcy court in the U.S.
Grupo Gigante was a major player in the supermarket business until it sold most of its stores to Soriana in 2008.
It has since bought Office Depot and acquired Restaurantes California and Beer Factory.
Mexico News Daily