Posted on 11/10/2008 11:03:06 AM PST by NRG1973
Circuit City Stores Inc. filed for bankruptcy protection on Monday heading into the busy holiday season as analysts question whether the nation's second-biggest electronics retailer will be able to survive.
The company said it decided to file for bankruptcy protection because it was facing pressure from vendors who threatened to withhold products during the holiday period. The company also said it cut 700 more jobs at its headquarters, after announcing a week ago that it would close 20 percent of its stores and lay off thousands of workers.
Circuit City filed for Chapter 11 protection, which will allow it to hold off creditors and continue operations while it develops a reorganization plan. Its Canadian operations also filed for similar protection.
Doing so "should provide us with the opportunity to strengthen our balance sheet, create a more efficient expense structure and ultimately position the company to compete more effectively," James A. Marcum, vice chairman and acting president and chief executive, said in a statement.
(Excerpt) Read more at biz.yahoo.com ...
Bushfault bailout
And boy oh, boy, have the sales reps. become so very friendly.
I thought I was havin' a relationship.
I have to admit, that cheesecake was skrumpshish!
Didn’t Circuit City fire their top salespeople a few years back?
Best Buy, Costco, and Wall Mart have taken a lot of market share away from them. They have been the walking dead for a long time.
I don’t think they are going to survive after the holidays are over. Just like Sharper Image, this is just a way to clear out inventory during the holiday shoping season. Nobody is going to want to shop there now and nobody is going to want to buy extended warranties given their outlook.
Best Buy croaked Circuit City by doing the same thing much, much better.
People have greatly slowed down discretionary buying and the retail herd will feel the cull. Guy I know owns a used car lot, he says October was the slowest month in his 32 year history.
This was suicide by incompetence. I stopped going there because the sales people knew nothing about their products. And some of them would make stuff up, rather than admit their ignorance. AMF.
Yup, it says that in the article. It says they were replaced by lower cost sales folks. I guess that wasn't such a good idea, eh. lol
They should get out of the computer business.
no gift cards this season
what aggrivated me was when a so called sales person just went to the circuit city website or just read the box to answer the question about the product.
If anything it was just a place to see the physical item I was going to buy from the competition on the internet.
Circuit City is notorious for refusing to honor promised rebates. I bought a laptop through their web site a few years ago and mailed in all required items (including a copy of bar codes that had to be be cut off the box with a utility knife). They said the store wasn’t participating in the rebate. Huh? I bought it off their own web site! Screw them! Haven’t bought anything else from them in years.
I haven’t stepped in a Circuit City since they wiped out my beloved Federated Group in Los Angeles back in the 80’s...I don’t think they ever did get to sell McIntosh and Klipsch, though...heh
“Circuit City is notorious for refusing to honor promised rebates.”
Happened to me too. They screwed me out of a small rebate. We got a Circuit City store in our town. I quit going there about two years. I drive about 40 miles to go to a Best Buy.
I needed some batteries so I ventured to the back of the store to the electronics dept, they had walls full of flat-screen TV’s for way under $500. Many for less than $300!
Yes, I remember that is one reason they are gone bankrupt. Really smart management policy, that.......
“Circuit City is notorious for refusing to honor promised rebates.”
“Happened to me too. They screwed me out of a small rebate.”
Happened to me, too. Haven’t been back since.
I hope they invested those unpaid rebates well.
I had a similar occurrence. I did a "buy it online and pick up is store" thing. I mailed in all the stuff for a rebate and they sent me a letter that the transaction number was wrong or some such crap. I wrote back that "I sent originals of all your paperwork, and if anything is wrong on the receipts, it is your doing, you morons! Keep the damned rebate! I will never shop with you con artists again!"
Shortly afterward, I did receive the rebate check which I did cash. However, I never bought anything else from them.
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