Cablevision: The Wiz Beaten
By Mike Farrell -- Multichannel News, 2/10/2003 12:16:00 PM
Cablevision Systems Corp. -- which revealed a major restructuring of its businesses in August, including shuttering 26 unprofitable The Wiz electronics stores -- has thrown in the towel on the consumer-electronics business.
Late Monday, the company said it was exploring its options concerning The Wiz operation, including selling or closing its remaining 17 stores by the end of the second quarter.
In a terse statement, Cablevision said The Wiz made a number of changes to improve customer service while continuing to evaluate its performance and strategy.
"However, continuing to operate the stores is no longer a viable option for Cablevision as business conditions at the retailer eroded due to a weakened retail economy and other factors," the MSO said in the statement.
Cablevision purchased The Wiz chain of retail electronics stores in 1998 for about $80 million. But the regional retailer, which operates in the New York metropolitan area, has been a drain on the MSO's finances.
In the third quarter -- the most recent financial figures available -- the 17 remaining Wiz stores reported a $25 million adjusted-operating-cash-flow deficit, compared with a $14.5 million AOCF deficit in the same period a year earlier.
