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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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RE: Inevitable for many companies
By Suntan on 1/16/2009 1:31:10 PM , Rating: 2
quote:
I heard recently that the ratio of retail stores per capita in the U.S. is far, far higher than in Europe


Yeah, but have you ever tried to buy electronics in some of the small/medium sized towns in Europe? Good luck finding squat for selection.

-Suntan


RE: Inevitable for many companies
By Penti on 1/19/2009 9:11:38 AM , Rating: 2
Shopping in medium sized towns is fine, you have your Samsungs, Panasonics, Philips, Thosibas, Pioneers, Sonys, Sharps and LGs. And a medium sized city? That's 100 000 people in the whole municipality in Sweden.

Not that they have a great selection, but it's not like you can buy any other models online, the TVs are made for one market and imported by the manufacturers in country specific models. Computer stores practically doesn't exist here though, the B&M stores has computers of course and I guess most people are happy about that.


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