A/V Retailing Consolidation in the Works
Sound Advice says that, in addition to currently operating two home-electronics stores in Scottsdale and Chandler, Arizona, Showcase is presently engaged in negotiations to acquire a third location. Showcase also operates home-entertainment departments in The Great Indoors home design centers in Scottsdale, Arizona, and Dallas, Texas, and expects to open one in Detroit, Michigan. Mike Hagg will remain as president of Showcase.
Sound Advice's Peter Beshouri explained the acquisition, stating that "we feel that Showcase Home Entertainment is a perfect fit for us and that it will serve as a model for potential future acquisitions. Our strategy is to consolidate, on a selective basis, the very-high-end segment of the consumer-electronics and custom-installation business."
According to Sound Advice, the agreement in principle is subject to a number of conditions, including completion of due diligence and the execution of a definitive agreement.