Commodore replants Tulip in retail market

PC vendor Tulip opts for strong retail brand name to relaunch itself in the market after more than a year?s absence

Dutch vendor Tulip Computers has re-entered the retail market by buying PC company Commodore, the year-old organisation which materialised from defunct German operation Escom.

Tulip pulled out of the retail market just over a year ago after conceding it could not offer the products at a correct pricing level without making a loss. Tulip UK had a retail supply deal with Makro, but the last supplies were sent to the retailer in May 1996.

Last week, Tulip paid an undisclosed sum for Netherlands-based Commodore. The operation had changed hands twice in a number of years, following the console manufacturer?s demise four years ago. As a result of Escom?s liquidation in 1996, a Dutch consortium bought the Commodore brand. In the UK, Commodore has been selling PCs under the Commodore name in Kingfisher subsidiary Comet.

Neal Grayston, UK MD of Tulip, said the purchase would mean Commodore could use Tulip?s recently opened manufacturing plant, which cost $45 million. Tulip has also invested over $80 million in overseas expansion. Grayston said Commodore UK would answer to Tulip?s head office, but the two operations would remain separate.

?You can?t make money or compete with other retail brands as Tulip, but the Commodore brand can,? he said. ?We will push Commodore again in the retail environment so that one brand could assist another range.?

Grayston said Tulip would remain its professional brand, while Commodore would be its retail offering. Grayston claimed that Commodore had a better retail brand than IBM, Compaq and AST.

?This is the most encouraging thing that I have seen Tulip do in the two years since I have been here,? said Grayston.