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Print 73 comment(s) - last by JonnyDough.. on Nov 5 at 7:42 PM

Circuit City to close 20% of its stores by year's end.

DailyTech reported in late October that Circuit City was on the brink of closing 150 stores and slashing more jobs. Circuit City's stock price has dropped over 90% since the start of the year and this past Thursday, the company was warned that it could be booted from the New York Stock Exchange.

It appears that that closing time is finally arriving for what's left of Circuit City's nationwide chain. The Consumerist reported today that Circuit City plans to close 155 of its 711 stores nationwide.

According to sources close to the company, employees of the affected stores were told this morning about the closings. The store closings will be effective 12/31/2008 and according to at least one report, Firedog and car installation employees will likely be fired within 48 hours.

As for what will happen to the closing stores, The Consumerist provided this commentary from an insider:

A team of liquidators will be coming in and taking control of the store. They will set prices as they see fit, and price match guarantee, employee discounts, CC circulars, and the new one price guarantee are all out the window. The price you see is the price you will pay, although it ought to be at a bit of a discount. Firedog services as well as car audio installation are gone immediately. Returns and warranties have to be taken to a CC that's not closing. No new stock will be delivered, we just gotta crank away and sell off everything, and when it's sold, we hit the road.

For more information about the layoffs including a letter sent to affected Circuit City store, you can head over to The Consumerist.


Updated 11/3/2008
Circuit City today officially announced its plans to close 155 stores which are located in 55 markets across the United States. The 155 stores being closed accounted for $1.4 billion USD in sales for fiscal 2008 according to a statement released by the company.

You can view the full corporate press release here along with a full list of all 155 closing stores here [PDF].



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RE: Hrm...
By JasonMick (blog) on 11/3/2008 3:05:29 PM , Rating: 3
What I find most ironic about this news is that there's a BIG new Circuit City store that opened in my area literally just several weeks ago, and now its on the list of ones that are closing.

In fact both the ones in my area are closing.

But the new one especially baffles me. You open a store and then close it a few weeks later? That seems like some pretty amazingly stupid business logic as they must be taking a huge hit closing that thing.

Circuit City = Fail

Here's hoping something better comes along, or Fry's gets expands to more locations.... anything to give me a b&m alternative to Best Buy.


RE: Hrm...
By VoodooChicken on 11/3/2008 4:43:39 PM , Rating: 2
That's just like Ultimate Electonics a few years ago. They sprang up all over the place like a yeast infection, I went to one ONCE during grand opening, and none of their prices were very competitive. I thought the whole chain had imploded and went away, but apparently they exist in other states.


RE: Hrm...
By Cypherdude1 on 11/3/2008 10:01:11 PM , Rating: 2
I'm glad they didn't close the store in S. Calif. While I hardly ever shop at CC anymore, I still want to keep that option. They're closing more stores in Calif. than any other state. Georgia is second.

BTW, my S. Calif. city now has two (2) Best Buys. There are also two (2) Home Depots, a Wal-Mart, a Target, two (2) Office Depots, two (2) Staples, Ford and Chevy dealerships, and even a Mall. Why my city has so many stores I don't know why. My city isn't that large and the stores are only about 4 miles apart. Since the economy has deteriorated, I can't see how all these stores can remain open.


RE: Hrm...
By Mitch101 on 11/4/2008 10:57:52 AM , Rating: 2
I have 2 staples and they are no lie 1.1 miles apart.

http://tinyurl.com/6gy9x3

I must have asked about a dozen times are you sure its not an OfficeMax or OfficeDepot going into the shopping plaza? Nope its another Staples. The original Staples is not closing either. Neither is ever busy.

Imagine your a Staples and your competition is Staples. LOL.

I do love the idea if one store is out I can go 1.1 miles to get it at the other. ;)


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