Fry’s electronics, once the envy of the tech world, is closing.
The company said Tuesday that it would shutter the division as it prepares for a $2.5 billion restructuring that will include selling off its $2 billion stake in rival JetBlue Airways.
Fry’s, which has about 4,500 employees in North America, Europe and Asia, said it would be selling off the electronics business, as well as its aviation and food services businesses.
“We will be consolidating our electronics business and will focus on selling off other business units in a phased manner,” CEO Jeff Fry said in a statement.
We will continue to make strategic investments in our technology, including in our aerospace and food business, which will generate significant benefits for our shareholders, Fry said.
It’s a tough time for us and a tough business.
We’re just trying to make the most of what we have and not try to go anywhere else,” Fry said at the company’s annual shareholder meeting.
Last month, the company filed for Chapter 11 bankruptcy protection after announcing that it had made $8.3 billion in revenue in the fourth quarter.
After years of declines in sales and a declining airline business, the airline has been battling a slew of issues in recent months, including a series of incidents involving pilot misconduct and security lapses.
JetBlue said last week that it was working to address safety issues, and the company has promised to improve security measures.
Meanwhile, Fry’s said it was also working on a reorganization that would see it sell off its food and beverage businesses.