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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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By ketchup79 on 1/17/2009 10:09:40 PM , Rating: 2
I know a lot of you think Best Buy stores are way better than Circuit City stores, but a lot of people probably think the other way and I personally feel there is more to this than just store layout. I personally think that higher ups at Circuit City got greedy and killed their organization. To walk into a store and have commissioned sales people tell you everything you need to know to make an informed purchase and then to go back only to find that those people are gone, replaced by folks that don't do more than read a fact tag has to be disconcerting. It's saying "Wow, there must be something wrong with this company if they can't keep those good people they had." Best Buy never had that, but nobody was expecting it either.

I feel for all of those losing their jobs, and I wish them all the best of luck finding new employment. However, I do not feel Circuit City was simply a victim of a poor economy. The greediness of the executives was their downfall.

"What would I do? I'd shut it down and give the money back to the shareholders." -- Michael Dell, after being asked what to do with Apple Computer in 1997
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