L.A. Tronics Will Close Its Doors
L.A. Tronics, an Encino-based retailer with five locations, has become the latest fatality in Southern California’s consumer electronics store wars.
In a statement issued Wednesday, the privately held company said it plans to end its business operations sometime after completing store liquidations that will begin Friday. The company, which has operated in the Los Angeles area for 16 years, said it could no longer compete against much larger chains such as Good Guys, Circuit City and Sears, Roebuck & Co.
The shutdown will result in the layoff of 250 employees. The company’s stores are in Encino, Torrance, West Los Angeles, Pasadena and Huntington Beach.
The failure of L.A. Tronics is just the latest sign of hard financial times for smaller operators of consumer electronics stores. Citing sluggish sales and stiff competition, Van Nuys-based Adray’s has closed five of its 10 stores over the last 12 months.
Silo Holdings Inc., a Philadelphia-based chain of retail consumer electronics stores that made an unsuccessful foray into the Southern California market, filed for federal bankruptcy protection in December. The filing marked the demise of the company’s San Diego operations. Silo had shut down all nine of its outlets in Los Angeles, Orange and Ventura counties in January 1994 because it failed to make much headway against the larger chains.
Meanwhile, the intense fight for sales has continued as some large chains have expanded in Southern California. For example, Best Buy, a chain based in suburban Minneapolis, opened its first Los Angeles-area store in 1994 and now has 19 outlets in the region.
Such expansion was cited in the statement by L.A. Tronics.
The “big guys are driving the local little guys out of the market by opening more stores than needed in the Southland,” it said.
Executives at L.A. Tronics could not be reached for comment Wednesday. A recorded message was the only response at company headquarters.
An employee at the company’s Encino store said a liquidation sale will start Friday and continue through the weekend. The employee could not answer questions related to possible consumer issues such as credit payments or equipment service arrangements.
