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Best Buy will be the only game in town for many customers. Circuit City was second to Best Buy in the retail consumer electronics market.  (Source: AdRants)
Best Buy shall rule the land when it comes to retail electronics in the U.S.

It’s been a tough road for Circuit City. The retail electronics giant has been pummeled over the years by the likes of Best Buy and Walmart, and has been unable to turn its operations around due to the current state of the economy.

In early November, the company announced plans to close 155 stores in the United States. The stores combined accounted for $1.4 billion USD in sales for fiscal year 2008.

Just a week later, Circuit City filed for Chapter 11 bankruptcy protection -- the filing showed that the company has $2.2 billion USD in debt and $3.4 billion USD in assets. The news got even bleaker today as Circuit City's CEO announced that the company failed to find a buyer and that it could not refinance its debt.

As a result, Circuit City will liquidate all of its remaining stores. The liquidators lined up to sell off the merchandise from the remaining 567 stores include Great American Group, Hudson Capital, SB Capital Group and Tiger Capital.

"We are extremely disappointed by this outcome," said Circuit City CEO James A Marcum "Regrettably for the more than 30,000 employees of Circuit City and our loyal customers, 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 early July, Blockbuster rejected a deal to purchase Circuit City.



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What a sad store
By Majes on 1/16/2009 12:19:33 PM , Rating: 3
I live in an area that affords me the chance to choose between frequenting 2 Best Buys and 2 Circuit Citys. The Best Buys are both clean, well stocked, and fairly roomy. Both Circuit Citys are dirty, poorly stocked and one is in an out of the way location.

That and I just like a blue theme better than a red. I always cringe when I get handed the Circuit City add.

Seems to me like they just weren't good enough and lost. I wouldn't blame the economy at all.




RE: What a sad store
By Brandon Hill (blog) on 1/16/2009 12:22:59 PM , Rating: 3
Circuit City stores/layouts are just horrible and they never have anyone manning the registers. Stepping into most Circuit City stores is like stepping back into the early 90s in feel. Best Buy stores always look/feel high tech IMHO and have much better layouts.

I also enjoy the Best Buy Reward Zone/Gamers Club programs. I use those points all the time. And they always send out 10%/12% off coupons -- at least once a month for me.

I'm surprised it took this long for CC to finally throw in the towel.


RE: What a sad store
By MozeeToby on 1/16/2009 12:41:18 PM , Rating: 5
I also have the choice of a Best Buy or one of two Circuit Cities. Therefore, I always choose Sam's Club or the web. Circuit City is disorganized and the service is poor, Best Buy's employees are pushy and often uninformed. Both are overpriced compared to what's available online or in discount stores.


RE: What a sad store
By kellehair on 1/16/2009 12:46:45 PM , Rating: 1
This couldn't have happened to a more deserving chain. I don't even feel bad for the (majority of) store employees. They are just as responsible as anyone in management.


RE: What a sad store
By Hakuryu on 1/16/2009 12:58:09 PM , Rating: 3
I agree with the comments above, and would like to add one simple thing I always thought was the worst move Circuit City made.

When you enter a Circuit City, the first thing you see is $1000+ TV's and a literal forest of cell phones, followed by DVD players/etc. They made you walk through all this to get to entertainment items like DVD's or software/video games which were hidden in the back. When you enter a Best Buy you first see CD's/DVD's and software/games.

I always thought the CC setup was a terrible choice compared to Best Buy. A blatant positioning of high cost items with the biggest sellers like entertainment hidden.


RE: What a sad store
By Oregonian2 on 1/16/2009 2:09:12 PM , Rating: 2
One of the articles I read in the last year said that CC had back in the big growth years gone wild buying econo-properties, meaning not in great locations and that this was one of their major downfalls.

I suspect the dirtyness/etc of some stores now is more likely an aftereffect of the decline rather than the cause.

I'm still bummed becuase I used to like CC better than BB (and others) prior to the experienced-folk firings (and one here happened to have a better location that BB's).


RE: What a sad store
By masher2 (blog) on 1/16/2009 4:08:00 PM , Rating: 5
In my location, the Best Buy is right off the interstate, next to the largest mall in the area, with the store itself visible directly to the interstate and two other major roads.

The Circuit City is in the back of a strip mall, visible nowhere except on an access road.

Circuit City puts the high ticket items up front, on the hopes that people coming in for a DVD will decide to impulse purchase a big-screen TV.

Best Buy puts the small stuff up front, on the hopes that someone snagging a big-screen TV might buy a few DVDs as well.

Is it any wonder one of these is beating the other to death?


RE: What a sad store
By Omega215D on 1/16/2009 9:29:29 PM , Rating: 2
Being that I live in NYC I have my choice of J&R, B&H Photo, several Best Buy and Circuit City stores.

The great thing is that the first three are pricematchers while Circuit City does not and usually can't find anything in their store when their systems say that item is in stock.

As for Newegg being lower in price, when it comes to digital cameras B&H and J&R are quite lower, even after taxes.


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