RealTime IT News

PC Mall Angles for Wareforce Assets

Direct marketer PC Mall Inc. is moving to acquire the assets of the bankrupt Wareforce Inc., a technology solutions provider that serves the Southern California corporate market.

Financial details were not disclosed, but there's little doubt that PC Mall got this one at a fire-sale price, as El Segundo, Calif.-based Wareforce stock is trading at less than a penny a share on the OTC market.

For fiscal 2001, Wareforce sales from continuing operations were $89 million. Torrance, Calif.-based PC Mall said the transaction is subject to the federal bankruptcy court's approval and the bidding procedures established by the court.

"Our combined organizations will provide our customers with a comprehensive solution and access to one of the largest selections of product and services in the marketplace," said Frank Khulusi, chairman and CEO of PC Mall.

PC Mall recently launched a government and education subsidiary to focus specifically on sales in those sectors.

The company, which sells computer hardware, software and peripherals as well as consumer electronics, has closed most of its retail showrooms to concentrate on selling products through telemarketers and Web sites, according to Hoover's.

In early April PC Mall acquired most of the assets of privately-held Pacific Business Systems Inc., a direct marketer of computer products to business and consumer customers under the ClubMac and PBS brands.