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

O Rly??
By aj28 on 1/16/2009 2:14:54 PM , Rating: 0
30,000 people are about to be laid off and all you guys can bitch about is liquidator pricing and store layouts? Since when did that have anything to do with the quality and work ethic of Circuit City's employees? Frankly, I'd think you would all feel a little worse about things, but then again I'd imagine most of you aren't about to become jobless because of this, so why would you? If you were on the inside you'd realize two undeniable truths about what has transpired this morning...

For the past year at least, it was management and media that killed the company - Dumbass corporate management, too lazy to get off their asses and actually restructure the company, and a media that couldn't shut up spreading their lies about every new press release, only encourage people to be more and more wary about spending their money there.

RE: O Rly??
By johnbuk on 1/16/2009 2:26:56 PM , Rating: 2
The media killed the company? Perhaps they contributed slightly to the downfall, but lazy employees who would rather stand around and talk to one another than actual work, running commercials that stated they would honor their own website pricing and then continuing to refuse to honor that pricing, poor selection compared to the competition, employees who didn't know the first thing about what they were selling- including a large percentage of employees who would flat out make up lies when they didn't know the answers to questions about items, and competition from internet companies all were far bigger contributors to the downfall then the media. Sure it sucks for the 30,000 employees who are losing their jobs, but IMO the 30 or so employees that I dealt with from CC over the years deserve to be unemployed.

RE: O Rly??
By TomZ on 1/16/2009 3:09:57 PM , Rating: 2
Since when did that have anything to do with the quality and work ethic of Circuit City's employees?
Sorry, you'll get no sympathy from me. I've been in the local CC store a few times over the past few years, and it has never been a positive experience, mainly because of the staff which are mostly idiots.

Management seemed clueless about things like "product knowledge" and "training" when it came to their staff. You can't effectively sell what you don't know.

RE: O Rly??
By Suntan on 1/16/2009 3:41:54 PM , Rating: 2
For the past year at least, it was management and media that killed the company -

Sorry buddy. Maybe I’d be inclined to believe that if I hadn’t actually been in one of their stores in the last 5 years. But I have. I’ve seen the work ethic of the low level rank and file.

Customers don’t like to have to say “excuse me” to get the attention of one of the salesmen that is huddled around the rest of the employees while they all talk about the great kegger they went to the night before.

I am sure there were some good, honest workers that worked for CC, but I bet I could count the number on one hand.


"This is about the Internet.  Everything on the Internet is encrypted. This is not a BlackBerry-only issue. If they can't deal with the Internet, they should shut it off." -- RIM co-CEO Michael Lazaridis
Related Articles

Latest Headlines
Inspiron Laptops & 2-in-1 PCs
September 25, 2016, 9:00 AM
The Samsung Galaxy S7
September 14, 2016, 6:00 AM
Apple Watch 2 – Coming September 7th
September 3, 2016, 6:30 AM
Apple says “See you on the 7th.”
September 1, 2016, 6:30 AM

Copyright 2016 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki