Circuit City to Close Remaining Stores

[ploto]

Bankrupt electronics retailer Circuit City Inc. said Friday it has asked for court approval to close its remaining 567 U.S. stores and sell all its merchandise.

The company said it has 34,000 employees.

"We are extremely disappointed by this outcome," James Marcum, acting CEO for Circuit City, said in a statement. "We were unable to reach an agreement with our creditors and lenders to structure a going-concern transaction in the limited timeframe available, and so this is the only possible path for our company."

In a filing with the U.S. Bankruptcy Court for the Eastern District of Virginia, Circuit City - the No. 2 electronics retailer after Best Buy (BBY, Fortune 500) - said it had reached an agreement with four companies to start the liquidation process.

The company said the sale would begin Saturday and run until March 31, pending court approval.

The retailer's Web site and call center will cease to operate after Jan. 18.

Circuit City said employees will receive 60 days notice of the termination.

Employees who are laid off earlier will get pay and benefits for the 60-day period beginning Friday, the retailer said.

Those who remain with the company to assist with the liquidation, will receive pay and benefits.

Circuit City also operates about 765 retail stores and dealer outlets in Canada. The company said its Canadian operations, which employ 3,000 workers, will continue to operate.

The company said it will redeem its gift cards through the liquidation sale, but the cards will have no value once the stores are closed.

"This is very significant. It shows you how bad things are for the the retail industry," said George Whalin, president and CEO of Retail Management Consultants.

Whalin said management mistakes over the past few years combined with the recession brought down Circuit City.

"This company made massive mistakes," he said, citing a decision to get rid of sales people and other mismanagement.

What's more, given the credit market freeze, Whalin added that no manufacturer wants to sell to any retailer who doesn't have money to pay for the merchandise.

At the same time, Whalin said there's still a very slim chance that one or more firms that have expressed an interest in buying Circuit City could still buy it out of bankruptcy over the next few days.

"I wouldn't say it's completely over yet for Circuit City, but it's almost over," Whalin said.

Love Goel, CEO of Growth Ventures Group, an investment banking firm focused on retailers, agreed with Whalin.

"Circuit City isn't a viable business in its old incarnation when half of electronics sales have moved online," Goel said. "CompUSA and Tweeter also didn't make it for the same reason."

However, Goel speculated that Circuit City could still find a lifeline if Golden Gate Capital, one of the reported lead bidders for the merchant, bought the company and restructured it primarily as an online business with very few physical stores.

"This would eliminate overhead costs, vendor conflicts and other issues," he said. "Circuit City has an almost $1 billion online business. So there is a future for it in that regard."

http://money.cnn.com/2009/01/16/news/companies/circuit_city/index.htm?postversion=2009011611

[mexicanjunior]

Wow...I guess some good deals will come out of this but it is sad...

[Ed Helicopter Jones]

It really sucks for the 34,000 people losing their crappy dead-end jobs who'll be forced to go look for another crappy dead-end job.

[dirk4mvp]

I used to think Cicuict City was the shit until my town got a Best Buy.

[S_A_Longhorn]

Tiem to look for deals...

[Dr. Gonzo]

I guess it's time to go look for that desktop I've been wanting.

[DynastyBuilder]

Sucks... I liked CC.

[IronMexican]

CC had some of the worst customer service I've ever seen. About damn time it went out of business.

[CubanMustGo]

I guess it's time to go look for that desktop I've been wanting.

Scary thing is that you never seem to find any real electronics deals in these liquidations. Maybe it'll be different this time.

[leemajors]

Wow...I guess some good deals will come out of this but it is sad...

not if COMPUSA's "sales" were any indication.

[AlamoSpursFan]

And me with a little disposable income...

Hmmm...

[leemajors]

The bad news: Circuit City—the number two electronics dealer behind Best Buy—is shutting down all operations in the U.S. The silver lining: If you're looking to grab a good deal on electronics, Circuit City's liquidation sale starts this Saturday and runs through March 31 (pending court approval of their bankruptcy filing). The catch: According to Gizmodo, prices may go up to MSRP on Saturday, meaning the whole "sale" part of the liquidation sale isn't exactly accurate. Those prices may drop drastically between now and the March 31 close, so it'll be worth keeping an eye on.

[SA210]

Time to get my BluRay

[Dex]

Wow. I didn't much care for Circuit City, but another 34,000 jobs down the drain right now ain't good to see.

[dimsah]

Shit! Even with liquidation prices, Circuit City's merchandise will still be retail cost.
Their prices are ridiculous.

[Frenzy]

Now who will give best buy a run for it's money?.... who!?

[Dex]

Now who will give best buy a run for it's money?.... who!?

Walmart will bankrupt them, too, soon enough. :downspin:

[CosmicCowboy]

They certainly won't be the last to go. Retail is gonna take a huge hit this year and only the strongest will survive. One of the big issues is credit. The overseas suppliers won't ship product without payment guarantees and these marginal companies can't get the credit lines.

The next real estate mess will be in commercial retail/shopping centers...as these stores close the half empty malls will start to default on their loans...

[baseline bum]

Sucks. I liked them way better than fucking Best Buy, who would hound you to buy a service plan if you bought so much as a Coke.

[CosmicCowboy]

Sucks. I liked them way better than fucking Best Buy, who would hound you to buy a service plan if you bought so much as a Coke.

That's just part of the fun.

One of my favorite lines to use is "What FUCKING part of NO didn't you understand?"

That's a slam dunk at Best Buy...LOL

[tonylongoriafan]

fucking extended warranty on my plasma!

[tonylongoriafan]

fucking extended warranty on my plasma!

aw, some good news, for me at least

Are Circuit City's extended warranties affected by the liquidation?
No. Circuit City Advantage Protection Plans® (extended warranties) have been backed by third-party independent companies for more than 15 years and as a result, are not impacted by Circuit City's closing.
Currently, all Circuit City Advantage Protection Plans are fully backed by the Assurant Solutions companies. Assurant Solutions operates as Federal Warranty Service Corporation, Sureway, Inc., and United Service Protection, Inc. Assurant Solutions is part of Assurant, Inc. (NYSE: AIZ), and its extended service contacts are backed by an Assurant insurance subsidiary rated A "Excellent" by A.M. Best Co.

[tlongII]

I'll check them out in February to see if I can get some good deals.

[tp2021]

Hmm... I've always wanted a DSLR...

[ploto]

The next real estate mess will be in commercial retail/shopping centers...as these stores close the half empty malls will start to default on their loans...

Anyone been in Crossroads Mall lately? As someone who went to Wonderland as a child, it is sad to see.

[Twisted_Dawg]

fucking extended warranty on my plasma!


Same here. I warranty runs (ran) to Aug 2010. I wonder what recourse we have.

[Twisted_Dawg]

They certainly won't be the last to go. Retail is gonna take a huge hit this year and only the strongest will survive. One of the big issues is credit. The overseas suppliers won't ship product without payment guarantees and these marginal companies can't get the credit lines.

The next real estate mess will be in commercial retail/shopping centers...as these stores close the half empty malls will start to default on their loans...

...And what about all these brand new EMPTY retail strip centers all over town? With no businesses filling them up, eventually the developer will have to default.

[CosmicCowboy]

They certainly won't be the last to go. Retail is gonna take a huge hit this year and only the strongest will survive. One of the big issues is credit. The overseas suppliers won't ship product without payment guarantees and these marginal companies can't get the credit lines.

The next real estate mess will be in commercial retail/shopping centers...as these stores close the half empty malls will start to default on their loans...

...And what about all these brand new EMPTY retail strip centers all over town? With no businesses filling them up, eventually the developer will have to default.

Its deja vu all over again...LOL

[MiamiHeat]

Homeless people everywhere, rejoice! Lady Luck has finally smiled upon thee! Quick, find an empty location to live in before the best ones are taken!

[Wild Cobra]

I used to think Cicuict City was the shit until my town got a Best Buy.
Just wait until you have to return something...

Best Buy really sucks! At least the ones near where I live.

[baseline bum]

It really sucks for the 34,000 people losing their crappy dead-end jobs who'll be forced to go look for another crappy dead-end job.

Come on, Barack! (http://www.theonion.com/content/video/obama_promises_to_stop_americas)

[mffl89]

Anyone know whether it's possible to get my Circuit City warranty back?

[exstatic]

Anyone know whether it's possible to get my Circuit City warranty back?

Read the thread B4 you post. There is warranty discussion.

[Thunder Dan]

has anyone gone to a CC yet? I want some cheap Beats by Dre or video games

[leemajors]

has anyone gone to a CC yet? I want some cheap Beats by Dre or video games

they're jacking prices up to MSRP and offering discounts from there. basically the same prices. i'd wait.

[MannyIsGod]

Anyone been in Crossroads Mall lately? As someone who went to Wonderland as a child, it is sad to see.

I went to burington earlier this week and yeah - that mall is in a sad state

[PM5K]

They tried the same shit at Macys when I went, there were a ton of people but I saw the prices and they weren't that good.

Maybe towards the end they were, but by then it was probably all crap.

As for Crossroads, a sad state indeed. The worst part is that the Target isn't open to the mall, so instead of being an anchor for Crossroads, it's basically a Target next to Crossroads.

Eventually Crossroads won't even be a mall, right now they use a large amount of square footage for the Red Oaks Ballroom/Norris Conference Center and some other convention/meeting type space.

[robino2001]

We went to the one in Round Rock this afternoon - place was a friggen mad house. It was funny/sad watching people snap up big-ticket items that were either normal price or above normal because they hadn't researched anything and just assumed it was a great price. While we were there, TV's and media (dvd/cds/games) were 10% off and car stereo was 20% off. The games weren't marked up really since they typically all sell at the same price, but tv's were marked up pretty high.

I've had thoughts on a 19-26" inch tv for our front room in the house but none of them were reasonable at all. The only thing I think I might swing in for over the next few days/weeks are possibly the prepaid/preloaded microsoft points and itune music cards. If they discount those (I assume they will over time), then they're obviously a deal. There were hundreds of those on the shelves.

[tp2021]

I went today to the one in Austin off of Brodie. I specifically checked the cameras, and the ones I checked were the same as Best Buy's sale prices.

[usckk]

I checked today as well, and most products just had 10% off regular prices, which is nothing. I can get cheapers stuff online still.

[Brutalis]

This is sad.

I used um... be.. um.. you know for Best Buy. Their whole customer care plus scheme is a bullshit lie and a cover to get your money. The company itself (like most) is about pushing product. We were instructed to lie about our TVs, brands and simply push product knowing they probably could not return it.

The bad guys are winning out. They do not have the best deals, if you shop around.. Sears usually always had us beat. I cannot tell you how many times we had to price match Sears.

This is really terrible. Best Buy is such scum, they literally teach us how to befriend you and get your money... all with NO commission. They claim non-commissioned employee's are trustworthy and better for customer relations when really all it is-is the employee works HARDER than a commissioned one at another retailer and makes no money for their efforts other than typical minimum wage. So basically Best Buy uses gimmicks by saying..

1. Our employee's are non-commission, because we want to provide you with the best service in a no-pressure atmosphere.
(false. not only is the employee still lying about half of what comes out of their mouth, we were instructed to claim plasma's last just as long as lcd tv's when in fact they do not)
2. Accessories. Do not buy them from Best Buy. Every Monster Cable and Dynex or Rocketfish accessory you buy was marked about 200% above cost. With each sale we got in trouble if we did not sale accessories along with your XBox, TV, computer, or whatever it may be.
3. Geek Squad Black Tie Protection claims to be the longest and best warranty in the market. It is the longest running warranty, however the cost for it is about 375% above it's value. Best Buy owns Geek Squad of course. So if they can make you pay that $350.00 extra on your new plasma TV because you bought into the whole lingo of the non-commission sales person, understand if your TV happens to go poop on you, they will fix it with refurbished parts from an off-brand that costs them about 50 dollars in parts and labor total. Firstly the chance of new LCD going poop is about 1 in 100 if you bought a quality brand, and even that 1 will cost BB and GS about 50 bucks to fix. The odds of your newer model plasma going poop is about 1 in 75, and even then it doesn't hardly cost them anything to put some refurbished parts in your quality Sony, Panasonic or Samsung TV. How's that make ya feel?

4. No Lemon Policy! If we have to fix your TV or computer a 4th time we will buy you the same brand and model over again! Brand new! Yays!

Wrong. Your TV or computer will not have a chance to break down a 4th time, the odds it makes it to the third time are so rare I'd have a better chance jumping onto a 2nd story roof in my bare feet. So say the odds don't go your way, and here you are on your third trip to get them to fix your TV or computer, guess what? This third time they will actually put a non-refurbished part in your equipment and make damn sure it will not break again. That way you won't be calling a 4th time and no new shit will be bought for you. You got took.

There's more but I'm tired of typing about this subject at the moment.

Best Buy is scum, and what's even more sad is half of everyone reading this paragraph already fell into this trap. I'm sorry but next time go to Sears.

[Brutalis]

Oh and now is the time to buy electronics. If (or when) the economy balances out and shit goes back to normal, guess what's going to happen? All those LCDs, Plasma's and laptops will go right back up to sick (the bad sick) prices. They will NEVER be lower than what they are priced right now. I have spoken with way too many major company reps who told me this for laughs, shits and giggles.

If you are waiting for bluray players to go on sale, then I hope you don't mind waiting 5+ years. DVDs will be phased out just like VHS tapes were. However blurays will still play your DVD discs. Same deal for PS3, as they have lost sooooooOOOOoOooo much money already on their systems, and happen to be partnered with bluray. So if you are waiting for a sale on either, don't. If anything they will go up (as if 400% above cost wasn't already high enough) imagine what they are going to be when the economy balances out. (if it does, or when, or whatever)

The time to buy is now.

And stay away from DLP televisions.

[Spurs 21+20+9=50]

And stay away from DLP televisions.

Brutalis - why no DLPs? I've had a 52" Mitsubishi for over 2 years with no problems yet. Have I been lucky?

[Sapphire]

If you are waiting for bluray players to go on sale, then I hope you don't mind waiting 5+ years. DVDs will be phased out just like VHS tapes were. However blurays will still play your DVD discs. Same deal for PS3, as they have lost sooooooOOOOoOooo much money already on their systems, and happen to be partnered with bluray. So if you are waiting for a sale on either, don't. If anything they will go up (as if 400% above cost wasn't already high enough) imagine what they are going to be when the economy balances out. (if it does, or when, or whatever)


I just read an analyst's prediction that the PS3 would be $299 by April.....you don't think that's true? I'm just asking because I have a 12 year old that wanted one for Christmas, and we told him to wait till they come down in price.

http://videogames.yahoo.com/feature/ps3-will-be-299-in-april-analyst-predicts/1279759

[Brutalis]

Brutalis - why no DLPs? I've had a 52" Mitsubishi for over 2 years with no problems yet. Have I been lucky?

Yes. To replace the bulb costs anywhere from 250-700 dollars. DLP is not new technology, all it is-is projection screen technology, just like in your tube TVs. Websites, tech people will try to say otherwise and provide you with all kinds of fancy techy looking words and stats but don't believe it. DLP is just projection screen technology that is smaller and just updated with modern times. That is the reason DLPs are so cheap. You can get a 67" Mitsu for 900 bucks. The bulbs go out within 5 years. Sorry man.


I just read an analyst's prediction that the PS3 would be $299 by April.....you don't think that's true? I'm just asking because I have a 12 year old that wanted one for Christmas, and we told him to wait till they come down in price.

http://videogames.yahoo.com/feature/ps3-will-be-299-in-april-analyst-predicts/1279759

I should clarify. Video gaming systems will all drop eventually, as new ones will comes out and will force prices to drop. Go ahead and pick up the PS3 when it goes on sale. Reading it over I worded that pretty bad I suppose.

Also guys if you want a bluray player, might as well just buy the PS3. It plays blurays, dvds, ps3 games, and can be hooked up to your internet you have at home for no additional cost. That way to can purchase movies and stuff online through your PS3.

Mainly bluray players are a scam. Those prices will always be way way above cost.

[mFFL03]

So I bought a webcam for $60 and got a $50 mail in rebate for xmas from Circuit City....

anyone have previous experience with a company going out of business and still having a rebate rewarded?

[ORION]

Those liquidators will rip you off.

[Korny Earl]

Yes. To replace the bulb costs anywhere from 250-700 dollars. DLP is not new technology, all it is-is projection screen technology, just like in your tube TVs. Websites, tech people will try to say otherwise and provide you with all kinds of fancy techy looking words and stats but don't believe it. DLP is just projection screen technology that is smaller and just updated with modern times. That is the reason DLPs are so cheap. You can get a 67" Mitsu for 900 bucks. The bulbs go out within 5 years. Sorry man.



I should clarify. Video gaming systems will all drop eventually, as new ones will comes out and will force prices to drop. Go ahead and pick up the PS3 when it goes on sale. Reading it over I worded that pretty bad I suppose.

Also guys if you want a bluray player, might as well just buy the PS3. It plays blurays, dvds, ps3 games, and can be hooked up to your internet you have at home for no additional cost. That way to can purchase movies and stuff online through your PS3.

Mainly bluray players are a scam. Those prices will always be way way above cost.

so says the guy who doesnt know a fucking thing.

[Slydragon]

Yes. To replace the bulb costs anywhere from 250-700 dollars. DLP is not new technology, all it is-is projection screen technology, just like in your tube TVs. Websites, tech people will try to say otherwise and provide you with all kinds of fancy techy looking words and stats but don't believe it. DLP is just projection screen technology that is smaller and just updated with modern times. That is the reason DLPs are so cheap. You can get a 67" Mitsu for 900 bucks. The bulbs go out within 5 years. Sorry man.





You know there are and have been for awhile now LED DLPs. Instead of the normal lamp it uses a LED light source which is suppose to last much much longer than the traditional bulb light source.

http://www.amazon.com/s/ref=nb_ss_e?url=search-alias%3Delectronics&field-keywords=led+dlp&x=0&y=0

[Slydragon]

I just read an analyst's prediction that the PS3 would be $299 by April.....you don't think that's true? I'm just asking because I have a 12 year old that wanted one for Christmas, and we told him to wait till they come down in price.

http://videogames.yahoo.com/feature/ps3-will-be-299-in-april-analyst-predicts/1279759

Just buy is for him, analyst and game system price should never be in the same sentence ever.

Of course system price will go down, it's been that way for years and with all systems. All they do is guess a month and most the time they are wrong. but when it does go down they back track and say "well I miss it by a few months"

STFU that's like me saying I'm a analyst and I think gas price will go up in a month. EVERYONE knows it's going to happen but because I got a title to my name people listen to me over they guy down the street.