Goodbye Circuit City

**Wes** · #1 01-16-2009, 12:49 PM

Circuit City is liquidating its remaining stores | CharlotteObserver.com

Circuit City will be closing all its US stores.

This is really sad, I loved Circuit City and usually preferred them over Best Buy myself.

I feel for all the empolyees too.

Quote:

Circuit City Stores Inc., the nation's second-biggest consumer electronics retailer, said today it had run out of options and will be forced to liquidate its 567 U.S. stores. The closures could send another 30,000 people into the ranks of the unemployed.

"This is the only possible path for our company," James A. Marcum, acting chief executive, said in a statement. "We are extremely disappointed by this outcome."

The company had been seeking a buyer or a deal to refinance its debt, but the hobbled credit market and consumer worries proved insurmountable. And bleak holiday sales results further weakened even the stronger retailers.

Circuit City said in court papers it has appointed Great American Group LLC, Hudson Capital Partners LLC, SB Capital Group LLC and Tiger Capital Group LLC as liquidators.

"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," Marcum said.

Shareholders are likely to receive nothing, as is typical in bankruptcy cases. It was unclear what would happen to the company's 765 retail stores and dealer outlets in Canada.

Circuit City filed for Chapter 11 bankruptcy protection in November as vendors started to restrict the flow of merchandise ahead of the busy holiday shopping season.

It had been exploring strategic alternatives since May, when it opened its books to Blockbuster Inc. The Dallas-based movie-rental chain made a takeover bid of more than $1 billion with plans to create a 9,300-store chain to sell electronic gadgets and rent movies and games. Blockbuster withdrew the bid in July because of market conditions.

Circuit City, which said it had $3.4 billion in assets and $2.32 billion in liabilities as of Aug. 31, said in its initial filings that it planned to emerge from court protection in the first half of this year.

Under court protection, Circuit City has broken 150 leases at locations where it no longer operates stores. The company already closed 155 stores in the U.S. in November and December.

U.S. Bankruptcy Judge Kevin Huennekens had given the company permission to liquidate if a buyout was not achieved.

The liquidation is the latest big blow to the nation's malls, which have suffered from a rise in vacancies as a slew of chains from Mervyns LLC to Linens 'N Things have liquidated. But analysts say that the demise of Circuit City, whose stores range in size from 20,000 to 25,000 square feet, will hurt the fortunes of mall operators even more.

"It will bring to market a glut of big box spaces across the country," said John Bemis, head of Jones Lang LaSalle Inc.'s retail leasing team. "It will have one of the largest impacts on big box real estate across the country."

Woodie4-07 · #2 01-16-2009, 12:56 PM

I hate to say it, but I called this. I've had a hunch about Circuit City, and it wasn't good from the start. It seems Best Buy is constantly building new stores & upgrading their older stores, while Circuit City, I haven't seen a new one in Minnesota for . . . yeah I cannot honestly remember the last time I saw a "new" store from their company. Oh well. Times are a changin.

**Wes** · #3 01-16-2009, 01:31 PM

They actually built a new one here, and closed one closer to town.

But that might have had more to do with that neighborhood going downhill, and moving with to the burbs.

**Jimmy B** · #4 01-16-2009, 02:07 PM

No wonder everytime I go to my local Circuit City, the place has been very disorganized lately. The shelves were a big mess, everything out of place/order and merchandise lying on the floor everywhere. I was wondering what the heck was up.

Carowinds 73-03 · #5 01-16-2009, 02:22 PM

I knew this was coming for a long time. Circuit City could not compete with Best Buy. It's been years since i even stepped foot into a Circuit City.

The only bad thing about this is that now Best Buy can raise their prices since Circuit City was it's only competition. Well in Charlotte anyway.

**Jimmy B** · #6 01-16-2009, 02:27 PM

^ Unless you have Wal-Marts in Charlotte or even Sears. The competition will still be there.

89magnumxl200 · #7 01-16-2009, 03:05 PM

Quote:

Originally Posted by Jimmy B

No wonder everytime I go to my local Circuit City, the place has been very disorganized lately. The shelves were a big mess, everything out of place/order and merchandise lying on the floor everywhere. I was wondering what the heck was up.

Our store has always been that way, not just recently. It was very poorly run, and I'm surprised they kept it open when they filed for bankruptcy.

**James R** · #8 01-16-2009, 03:06 PM

Well, this worries me. I just purchased a rather expensive DSLR camera from Circuit City, including a CC-backed warranty. Does this mean that my warranty is useless? I gotta find out now...

**Leo C** · #9 01-16-2009, 03:40 PM

They lost the battle : ( and I gave them over the last 2 years my biggest purchases like a computer, an AC, some software, even the Dark Knight dvd that I found out didn't come with the cardboard cover. : ( I helped them out where I could.

I remember the 90's look and jingle: "Welcome to Circuit City----Where Service is State of the Art."

It will now join the ranks of Service Merchandise, BEST, and other stores.

tntornadox · #10 01-16-2009, 03:43 PM

Circuit City also just recently closed it's location here and relocated to a new store nearby...

I think their undoing started when they got out of the high-margin appliance business and went to electronics only... appliances drive profits well- that's the only reason Sears is still around (for now, anyway).

Sadly, this media-induced consumer panic is sending many retailers to the scrap heap... it's sad too, I always preferred Circuit City to Best Buy-here locally, they were always cheaper.

track_six · #11 01-16-2009, 03:51 PM

All electronics stores come and go...it is the eventuallity with any large corp. chain of stores. They were not the 1st and they won't be the last. It isn't just electronics either, Children's Palace toy stores used to be everywhere in the 80's, then jeffrey and the Toy R' Us brand came along and Childrens palace went bye-bye. HH Gregg has already taken circuit city's place here in Cleveland, Oh. I would not be surprised to see them move into a few new markets that Ciricuit City is vacating.

tntornadox · #12 01-16-2009, 04:25 PM

I am not the biggest fan of hhGregg either- it's like a used car dealership selling appliances and electronics... or that's what it feels like anyway. Give me Sears for appliances and just about anyone else for electronics.

The Toader · #13 01-16-2009, 05:25 PM

Well, I used to like circuit city. But when I was going to buy a laptop there, the guy would not let me get the computer I wanted. (he wanted to sell me the $200 more laptop and a $300 service plan) Which in the long run, I'm very happy he was so bad. Now, I have a Computer that was cheaper then the one I wanted in the first place, and Its twice the computer I would have got. I got mine at bestbuy. The circuit city's in Minnesota are all old looking. It looks like they have never had an update since they were built. I just never understand why companies close all stores in one state, or all stores period. Why not keep a few stores open in each area, and if their customers are dedicated enough, they will make the effort to go there. Thats my thought atleast.

Kyle L · #14 01-16-2009, 05:43 PM

I've never liked Circuit City, Best Buy always had a better selection, better staff, and for the most part, better prices.

Every time I went there it seemed like everything was half assed. The store was a mess, I knew more about the products than the employees, and their recent ads are pretty craptacular.

If I buy electronics in a store its usually at Best Buy. They seem to have fair prices and their selection is pretty unbeatable if you ask me. However, Amazon.com is my preferred shop for everything.

Chris L · #15 01-16-2009, 06:48 PM

Ya, I like Best Buy better than Circuit City.

I wonder with these outlets being liquidated, can we get good last minute deals on merchandise?

The Toader · #16 01-16-2009, 07:54 PM

Hmmm...I wonder if they would ever make it to 75% off??? or even 50%

**Leo C** · #17 01-16-2009, 07:57 PM

Just do your homework knowing the market price of your items. Turning over to a new company, liquidators, they will take control of the merchandise and may mark up the item before applying the traditional store closing markdowns.

It just seemed like yesterday I was getting a Black Friday deal on memory at CompUSA.

**Brian F** · #18 01-16-2009, 09:46 PM

Crap, I knew that extended warranty on my truck stereo was a waste of money.

Griswold · #19 01-16-2009, 10:01 PM

I never went to Circuit City and the Best Buy's here in Columbus are crap. I took a friend to Best Buy to look at PC's and no one really wanted to help us. Screw them both, go to Microcenter. She got a better deal there than she would have ever got at Best Buy. They were helpful and friendly, and economical for what she wanted/needed.

medieval · #20 01-16-2009, 10:03 PM

The Circuit City near my house is having on sale at 75% off tomorrow.

**Leo C** · #21 01-16-2009, 10:50 PM

I thought that was the Freehold one that was earmarked earlier in the holiday season to close.

The Toader · #22 01-16-2009, 11:29 PM

Quote:

Originally Posted by Leo C

It just seemed like yesterday I was getting a Black Friday deal on memory at CompUSA.

Well about 2-3 years ago, we had CompUSA go out of business! My mom had just bought a laptop and a service plan, and when her battery had to be replaced, we had to send it to Texas! I'm not sure what we will do now with our desktop. we bought a 5 year warranty 2 years ago!!!

medieval · #23 01-16-2009, 11:50 PM

Quote:

Originally Posted by Leo C

I thought that was the Freehold one that was earmarked earlier in the holiday season to close.

I should be more specific. I have a problem with that ha

The one in Brick off of Route 70.

**Leo C** · #24 01-16-2009, 11:54 PM

Mt. Laurel

my local store, was a newer style store. The Circuit City of the older style in Fairless Hills, PA had the sign burn out to just the "Ci......ty" That will never be replaced now.

**Andrew P** · #25 01-17-2009, 12:22 AM

Griswold,

I would never buy a computer from Best Buy (or for that matter, Circuit City), but I will buy computer parts from them. In my experience, Best Buy seems to have what I need, whereas CC was more sporadic.

tntornadox · #26 01-17-2009, 12:27 AM

We always had exemplary service with our warranty claims with CCity.

Kyle L · #27 01-17-2009, 02:22 AM

Quote:

Originally Posted by Andrew P

Griswold,

I would never buy a computer from Best Buy (or for that matter, Circuit City), but I will buy computer parts from them. In my experience, Best Buy seems to have what I need, whereas CC was more sporadic.

Who would you buy it from then? With Circuit City gone, and CompUSA done a while ago, there aren't a whole lot of nationwide chains to buy electronics at, unless you're a Mac user.

**James R** · #28 01-17-2009, 02:40 AM

^ Really? Radioshack, Best Buy, Wal-Mart, Fry's, Target, Conn's... I'm sure there are more regional stores as well.

And you can also buy direct from the maker. Found out that my Warranty is safe. Very glad about that. Looking to stop by my closing CC to see what I can find...

coasterlove · #29 01-17-2009, 08:27 AM

Quote:

Originally Posted by Wes

Circuit City is liquidating its remaining stores | CharlotteObserver.com

Circuit City will be closing all its US stores.

This is really sad, I loved Circuit City and usually preferred them over Best Buy myself.

I feel for all the empolyees too.

Oh no, it must suck to be losing a minimum wage job. Horrible. Who knows, maybe they'll even get a good paying job. LoL

I'm not surprised at all about Circuit City closing. They basically sucked. So often they were out of sale items very early into the sale. The same for popular new releases. I'd go there early on Tuesday when most movies are released and they were already out of stock. Then I head over to Best Buy and they're filled with the item I want.

Best Buy is just run very well. Circuit City was a mess and I'm almost happy they're gone. They had no idea what they were doing or how to run a business.

**Leo C** · #30 01-17-2009, 08:54 AM

Their circular came in today's paper but I know that one is null and void, the very last normal looking one.

Thread Tools
Show Printable Version Email this Page
Display Modes
Linear Mode Switch to Hybrid Mode Switch to Threaded Mode