Posted on 01/16/2009 9:24:56 AM PST by PittsburghAfterDark
Bankrupt Circuit City Stores Inc., the nation's second-biggest consumer electronics retailer, said Friday it failed to find a buyer and will 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.
The liquidation of Circuit City is the latest fallout from the worst holiday shopping season in four decases. People have slashed their spending since the financial meltdown in September as they worry about their job security and declining retirement funds.
(Excerpt) Read more at breitbart.com ...
This whole thing started downhill in 1997 with DIVX and their failed attempt to dominate the DVD market. Since then bad decision after bad decision has cost this company any and every competitive advantage it enjoyed.
The employees didn't destroy this company, management did.
At least I can still get a good buy at Kelly & Cohen.
I may buy a Blue-Ray player for ten cents on the dollar.
Re: The employees didn’t destroy this company, management did.
Hmmmm, where have I seen that before?
What about my extended warranty?
Perhaps the board of directors thought that they could "spend their way to prosperity". That *always* works, right? :-/
Circuit City management a few years back put all salesmen on an hourly wage instead of commission sales. The good salesmen took off since they could make better money elsewhere and they were left with red-shirted goons that didn't know their products and couldn't care less.
But it saved money on the balance sheet for a bit.
It's singing with the Choir Immortal. Taking a dirt nap. Pining for the fjords. In short, it is a warranty, no more.
/johnny
Maybe. The last time (several years ago) I was in a CC store I couldn't find anyone to wait on me. I found what I wanted but couldn't find anyone to question about it. When I left empty handed someone standing by the door ask if I found what I wanted. That person, not management, heard my opinion of their store. Maybe management told employees that customers don' count.
Management fired all of the people who knew the products in 2007. It sunk CC. Now BB is laughing all the way to the bank. The closed CC her at the Mall of Georgia is literally across the street from BB.
That person, not management, heard my opinion of their store. Maybe management told employees that customers don’ count.
Basic f(x) of mgt = recruit, hire, train, retain effective staff - looks like you agree mgt. failed. It is always management, that’s how business works or doesn’t.
They just opened a new store out here by me,...late summer...haven’t made my way to it....as yet!
I was going to buy an HD LCD TV from them last year and the people that worked there were idiots.
Also, when I asked about the price match guarantee, they said it only applied locally.
I asked what the definition of “locally” was and 6 CS people at the store couldn’t give me a non-vague answer.
I told them I would buy elsewhere and vowed to never return again as that was not my first negative experience with them.
No wonder they went under.
Maybe I’ll go buy something from them now at wholesale cost.
Interesting. When I lived in Virginia Beach the BB and CC were across the street from each other too. Unless I was looking for something specific I usually went to whichever one didn’t require a left turn to get into to.
That's right, when they told you it was "ex warranty" they didn't mean "extended"....
Lately? Banks, insurance companies, mortgage companies, investment banks, take your pick.
I think Best Buy toasted them. I got EVERYTHING I wanted this year cheaper at BB and that includes THREE laptops for my children (all less than $400 and WORK GREAT)
They didn’t honor the extended warranties properly even when they were operating. One guy’s PC wouldn’t boot — wouldn’t even POST — called in to make a claim and they said it was a software problem and give him Microsoft’s number.
Better pray you don’t have any troubles with them. I would never buy any hardware from Best Buy. Absolutely the worst to deal with I ever encountered.
Circuit City is bad also and I am not suprised it is dead considering all the (way too numerous to list) stupid decisions they made in the last 10 years.
This could be the epitaph for Circuit City... or the United States.
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