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Gateway to shut its retail stores

Struggling computer maker Gateway said last night that it would close all its 188 retail stores by April 9, while looking at 'wider retail distribution of its products in the US and abroad'.

The closing will result in the lay-off of about 2,500 employees, Gateway said in a statement.

The company will continue direct consumer sales of Gateway products to consumers and businesses from its website.

Gateway said it would provide more information on its strategy when it announced its first quarter financial results on April 29.

Gateway has already cut several thousand jobs, and closed 80 of its retail stores. The company closed its operation in north Dublin in 2001.

The company in January announced it would acquire rival PC maker eMachines in a bid to become the number three US manufacturer behind Dell and Hewlett-Packard.