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After suffering the first financial loss in its history, Montreal-based Hartco Enterprises Inc. announced it is spinning off its computer and communications divisions from its department store chain.
Canada's largest chain of computer franchises posted a $4.8-million loss on revenues of $850.3 million during the fiscal year ending Jan. 29, 2000. The primary reason for the loss was a $10.8-million write-down related to the cancellation of an Oracle software project. Hartco earned $8.5 million on revenues of $811.3 million a year earlier.
The proposed spin-off would separate Hartco's 57-location department store chain from its computer division, which includes 78 MicroAge business-to-business franchises, the Compucentre and CompuSmart retail networks and the MultiMicro distribution business, and the communications division, which includes 28 Telephone Booth retail stores and three TeleSolutions business-to-business franchises.
Jeffrey Hart, executive vice-president, says...