Cablevision Systems Corp. (Bethpage, N.Y.) has announced it will discontinue operations of its the Wiz consumer electronics chain, closing or selling the 17 surviving stores by the end of June.
In October 2002, the company closed 26 of the troubled Wiz stores, in New Jersey, New York and Connecticut.
Cablevision, which is primarily a cable TV provider in and around New York City, bought the regional The Wiz chain out of bankruptcy in 1998, as part of a strategy of cross-marketing its various businesses (which also include Radio City Music Hall, Madison Square Garden, the New York Knicks and the New York Rangers and an assortment of cable channels — MSG, American Movie Classics and the Independent Film Channel). Cablevision thought it could use the stores to boost sales of Internet modems and tickets to events.
The hoped-for synergy never worked. The chain's operating loss was $87 million in 1999, $88.4 million in 2000 and $76.5 million in 2001, according to company filings with the Securities and Exchange Commission.
Cablevision said in a statement it will “exit the consumer electronics business by the end of the second quarter.” The company said it is “exploring options for its 17 remaining The Wiz stores, including selling the business or closing all stores.”