backtop


Print 124 comment(s) - last by jtdwab.. on Jan 22 at 3:50 PM


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.



Comments     Threshold


This article is over a month old, voting and posting comments is disabled

liquidation
By tastyratz on 1/16/2009 12:23:19 PM , Rating: 2
as in fire sale to consumers I take it, or is any of the stock going to be taken by a liquidator for competition?

Any idea when the liquidation is to start?




RE: liquidation
By Brandon Hill (blog) on 1/16/2009 12:25:09 PM , Rating: 2
"Fire sale to consumers" which means they jack the prices up to MSRP, then slowly bring out the 30%, 40%, 50%, etc. discounts.


RE: liquidation
By 67STANG on 1/16/2009 1:01:15 PM , Rating: 2
Wait for 70%, then snatch up the Blue Ray players and PS3's...


RE: liquidation
By rudy on 1/16/2009 1:36:19 PM , Rating: 3
They will be long gone by then. I have found all the liquidations in my area to be completely useless. Remember the people shopping these places are less informed and used to paying high prices so the wimpy 20% that cant even beat newegg looks good to these people. On top of that when compusa went under the liquidators and signs all over saying sold on the best items so you could not get them and then they bought them at 90% off the last day.


RE: liquidation
By Oregonian2 on 1/16/2009 2:11:30 PM , Rating: 2
Yes, if they've got the same guys who did CompUSA, it'll be a joke. Prices will be raised from their normal discounts and start at 5~10% off!!!! (list). Whats more many people will think it a great deal and buy (afterall, it's a store closeout, it MUST be a good deal, eh?).


RE: liquidation
By sticks435 on 1/16/2009 8:37:38 PM , Rating: 2
When the CC stores went under here in KC couple of months back, I picked up some PC and 360 games for pretty cheap. Small stuff like that they usually have ton's of. It's the bigger price items (and even things like computer parts, etc) that are a scam.


RE: liquidation
By joemoedee on 1/16/2009 3:49:59 PM , Rating: 2
In Georgia, they already closed most of the CCs. The sale ran for a few weeks, with the discounts starting low (Say, 10%-20%) all the way to 60%-70% on some items.

The first to get massive markdowns were CDs and DVDs.

The prices themselves did not change, and there were a few decent deals to be had, especially towards the end.


RE: liquidation
By anotherdude on 1/16/2009 1:37:51 PM , Rating: 3
If it's anything like the Comp USA liquidation it will suck big time. There were no real bargains at all at first, the stuff was still way higher than Newegg for weeks, and then slowly the prices came down but by the time they did the good stuff was gone. On the last day I bought a laptop bag for an OK deal. They had motherboards that had been sitting out in the open on display with ruined CPU slots and the like for 20% of retail - what a crock - still hiher than newegg. And no returns either.


RE: liquidation
By strikeback03 on 1/16/2009 2:19:41 PM , Rating: 2
I got a good deal on a Corsair PSU, $30 cheaper than it was available online at the time. That was the only item I found cheaper than NewEgg though.

From reports out of the already-closed CC stores, there were some good deals to be had so long as you didn't mind the no-returns.


RE: liquidation
By Bender 123 on 1/16/2009 2:37:44 PM , Rating: 2
Think of all the DIVX movies you can pick out of the bargain bin!

I bet there are some stores that still have a few laying in the back room, for laughs.


RE: liquidation
By jtdwab on 1/22/2009 3:50:46 PM , Rating: 2
I hit a CC today just because I was going near by. They had a glanced at the price on the current 720P Panasonic 42" plasma then headed accross the street to the BB. The TV was 50 more at CC with the liquidation 10% discount. Online the TV was another 150 below BB with shipping.

Its one thing to not match online but to not even beat the store next door is pretty shameful. Although I guess the shame is on the guy that falls for the 10% scam. I also saw a WD 1 TB harddrive for 265 which I am pretty sure was the same one at newegg for 104 for OEM. I didn't check models on that one though.


"Mac OS X is like living in a farmhouse in the country with no locks, and Windows is living in a house with bars on the windows in the bad part of town." -- Charlie Miller

Related Articles













botimage
Copyright 2014 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki