Gateway said on Thursday that it will close its 188 retail stores on April 9. As a result of the store closings, approximately 2,500 retail positions will be eliminated. The company said it will continue direct sales of Gateway products to consumers and businesses via its Web site and 1-800-Gateway. The move comes following its acquisition of eMachines.
Read MoreGateway plans to acquire rival eMachines “in a bid to regain its footing in the PC game and broaden the distribution of its Gateway-branded consumer electronics devices at retail,” reports CNET News.com. Gateway said it plans to purchase privately held eMachines for US$30 million in cash and 50 million shares of stock. Based on Gateway’s closing price of $4.09 per share Thursday, the total value of the deal would be around $234.5 million. Read More
Gateway is launching a new ad campaign designed to promote its digital-music services and educate consumers about what “rights and responsibilities” they have in using digital music, reports c|net. “Dubbed “Rip, Burn, Respect” — a not-so-oblique reference to Apple’s ‘Rip, Mix, Burn’ campaign of 2002 — the television ads that will saturate the United States beginning Thursday night aim mostly at showing how Gateway’s digital-music packages simplify online music.
Read MoreGateway has begun laying off 17 percent of its 11,200-person staff and closing 76 of its retail stores, according to c|net. “The cuts are part of a previously announced plan to return the company to profitability this year. Before that profitability can happen, however, Gateway will suffer financial pain.
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