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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: The Economy?
By FITCamaro on 1/16/2009 2:18:05 PM , Rating: 2
I agree with you on some of their business decisions. But 30,000 people losing their jobs is hardly something to be glad about, especially when it wasn't their decisions that caused the problems.

I recently was looking to buy a sound card. Despite being pissed at Creative for not allowing Audigy cards to fully use EAX in Vista, I got tired of my games not sounding as they should. Found that Best Buy had an X-Fi ExtremeGamer on sale but none showed in stock. Circuit City showed as in stock though. So I went over there to price match.

Now I know that the typical policy is they don't price match unless the other store has it in stock. But given that I could just buy it online, I figured they'd do it to get the sale. Well they chose not to. So I went over to Best Buy to double check if they had any in stock since their inventory system isn't real time. Ended up that the other store in town (that was actually closer to where I live but not near the CC) had an open box one that I ended up getting even cheaper than the sale price. The guy at Best Buy even told me if it was them, he would have price matched as long as the price was valid because Best Buy views it as to much of a hassle to call over to other stores to double check that they have it in stock. Especially since people can just buy online.


RE: The Economy?
By arazok on 1/16/2009 3:31:37 PM , Rating: 2
quote:
Despite being pissed at Creative for not allowing Audigy cards to fully use EAX in Vista, I got tired of my games not sounding as they should.


Thanks for making my blood boil again. I forgot about how pi**ed I was with Creative and their whole Vista fiasco. My Audigy still bugs out sometimes. Shame on you for caving to the monopoly. I’m still holding out – I fully intend to buy a non creative card in my next PC.


RE: The Economy?
By Reclaimer77 on 1/17/2009 7:51:04 AM , Rating: 2
All non Creative cards suck though :(


"I'd be pissed too, but you didn't have to go all Minority Report on his ass!" -- Jon Stewart on police raiding Gizmodo editor Jason Chen's home

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