Fry’s electronics is closing down after months of declining sales and an increasingly competitive electronics industry.
The company said on Wednesday it had decided to close the Co-Electronics division as a result of lower sales.
It has now shifted focus to the manufacturing and distribution of its other products, including its popular F-Series electric vehicles.
Fry said the move would save the company $1.6 million a year.
“The company has a number of business units in which it is unable to expand, which includes its Co-Procter, and these are not sustainable in the long term,” it said in a statement.
Despite the loss of sales, Fry’s said it had still managed to make money, adding that the loss was “not significant”.
“Fry is an excellent business, and we are confident that it will continue to grow,” the company said.
In its statement, Fry said it would remain in business “in the future, for our customers and customers’ future needs”.
The announcement comes at a time when consumer electronics are facing a growing backlash from Apple, Samsung and others who are fighting to keep up with growing competition.
Apple has already filed for protection against an anti-trust case brought by a Chinese supplier that was caught selling components from a rival supplier.