Comp USA Closing 'Good Guys' Stores

Oct. 5 (KGO) -- A company that's been around for more than 30-years selling home entertainment equipment will disappear in less than a couple of months. The Good Guys stores are shutting down, leaving hundreds of people out of work.

Several Good Guys locations told ABC7 that the extended warranties purchased on Good Guys products are still valid because they're backed by another company, General Electric. But corporate headquarters told ABC7 that the details of the warranties are still being worked out and customers will be proactively contacted. So it looks like with the warranty issues, the bugs are still being worked out.

For employees, the news of the closure comes as a big shock. Some of them have worked here for 15-years.

This announcement came down early Tuesday morning. After 30-years in business, 46 Good Guys locations will be closing in the next two months. All of them are in California, with the exception of one in Nevada.

A local newspaper reports 1,200 employees will be losing their jobs, including more than 300 here in the Bay Area.

Larry Mondry, the president of Comp USA - which bought out Good Guys - issued this statement: "As home entertainment products become more prevalent among consumers, the need for stand-alone high-end home entertainment retailers is declining. As a result, we made the decision to close all Good Guys locations."

Employees say they are a little disappointed they weren't notified formally.

Robert O'Grodnik, employee: "It wasn't announced really to us. We found out on the internet on the Good Guys website. So communication is an issue. But now we know."

Bobby DeHerrera, customer: "I know that the competition is probably really tough out there, but I like Good Guys, and I shopped there for a long time. So it's a real drag to see that they're shutting down."

Comp USA bought Bay Area-based Good Guys two-years-ago in a $55 million cash deal. At the time, the company believed the merger would promote a long-term growth. But with stiff competition, Good Guys and other electronic companies have actually seen a decline in sales. Only a few companies, like Best Buy, have seen a growth in sales

Meantime, Good Guys will be liquidating all of their merchandise. That's going to be happening in the next day or so. That means big sales for consumers later this week.

Almost every store will be closing in the next two months. Two stores will remain open for product liquidation: one in San Mateo and the other at San Francisco's Stonestown Galleria.

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