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CompUSA buying Computer City

Published on .

CompUSA, Dallas, agreed to buy rival Computer City, Fort Worth, Texas, from Tandy Corp., for $275 million. The move, if approved by regulators, would solidify CompUSA's lead as the dominant computer superstore retailer. But it would mark the end for Computer City and a turnaround planned by its chief executive, ex-CompUSA Chairman Nathan Morton. Mr. Morton last year led a group buying a 19% stake in Computer City. In May, however, Computer City's fate became uncertain when Tandy disclosed it was seeking investors for the long-ailing chain.

Copyright June 1998, Crain Communications Inc.

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