March 12, 2013
Discount electronics retailer Tech For Less has reopened its outlet store in Colorado Springs after completing its move back to the Springs from Indiana and Utah.
The outlet store opened March 4 and is part of the company's 50,000-square-foot warehouse and headquarters complex at 1610 Garden of the Gods Road. It sells the same selection of new and refurbished computer equipment and consumer electronics gear available on the company's website, said Rick Parker, president and CEO of Tech for Less and a partner in its parent company, Encore Holdings LLC.
Encore, formed by Parker and two other Tech for Less founders and former executives, acquired Tech For Less in January from Waltham, Mass.-based ModusLink Global Solutions Inc. for $1.55 million. They have spent the last six weeks moving more than 100,000 pieces of merchandise in 50 truckloads to the Springs, hiring 70 employees and getting the building ready to accommodate Tech For Less and its operations, Parker said.
"We are just tying up loose ends with ModusLink and are about 80 percent complete in our inventory and reconciliation of what we acquired. We are farther along than we expected to be at this point," Parker said Tuesday. "Sales continue to climb and are growing every day and are returning to the historic levels that we had reached when we owned the company in the past. The key is to provide a great customer experience and meet their expectations."
Parker and his partners sold Tech For Less to ModusLink in 2009 for $31 million, but the acquisition never seemed to be a good fit for ModusLink and sales fell from $40 million in 2009 to $25.9 million last year. ModusLink laid off 87 employees and closed the retail store a year ago when it moved most of the Tech For Less operations from the Springs to Bloomington, Ind., and Orem, Utah.
Tech For Less plans a grand opening early next month for the outlet store, warehouse and headquarters, Parker said.