Besides closing more than half its stores, the Dallas retailer will restructure its corporate operations and get $440 million cash from its parent company.

In recent years, other struggling retailers, including Winn-Dixie and Organized Living, have closed their Triangle stores.

But unlike a corporate bankruptcy and liquidation, CompUSA's drastic plan doesn't necessarily mean the retailer is going out of business, said Mitzi Montoya-Weiss, Zelnak professor of marketing innovation at the N.C. State University College of Management.

"It means they're losing money," she said. "Business 101 says, 'We have to stop the hemorrhaging first.' "

But in the ultracompetitive consumer electronics industry, CompUSA may need to reinvent itself, Montoya-Weiss added.

"Maybe they'd invest more in online or maybe they'll partner with someone," she said. "The American consumer still believes in brand names, and there are a lot of creative alternative ways to leverage their brand."

But the company would have to complete its restructuring before it could move on with any future plans.

The 126 closures, including the Raleigh store at 7101 Glenwood Ave., will occur over the next 60 to 90 days. The company's three other North Carolina locations, in Charlotte and Greensboro, are among the 103 that will remain open.

Company spokeswoman Jessica Nunez wouldn't say why the Raleigh store was targeted for closing, but its location on Glenwood Avenue is within three miles of a Wal-Mart, a Circuit City store and the new Best Buy at Crabtree Valley Mall that opened in November.

A news release Tuesday quoted CEO Roman Ross saying the company is closing stores "to focus on initiatives that enhance its top-performing locations."

Nunez did say clearance sales will begin at the affected stores as soon as possible.

She declined to give the numbers of employees at the Raleigh store, but said the company has a total of 13,000 employees.

Employees will be offered severance packages that will vary depending on their tenure and position with the company, she said.

The consumer electronics industry is growing as technology takes off, said Megan Pollock, spokeswoman for the Consumer Electronics Association.

Factory sales of consumer electronics to retailers were $99.3 billion in 2002 but are projected to be $155.2 billion this year, according to the association.

The growth in sales brings added competitors, both online and brick-and-mortar stores. And consumers are more empowered now as they become more familiar with the products they are buying, Pollock said.

That means that the future of the industry will have a lot to do with service, she predicted.

Most of the major chains are trying to set themselves apart in this arena, offering home installation services, advice hot lines and fancy sections within their existing stores for special interests.

"It's going to be a lot more about what we can do for you," she said.

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