Circuit City Store shudown specifics -first phase
I was providing information that is true. To give me a red chicklet for providing information means you are a MORON.
So be it, have a good day
And then you don't even have the cojoens to say who are. Best of luck to you because you need it1
Circuit City Store shutdown specifics -first phase
Circuit City is having financial problems and intially is shutting down several stores to try and avoid filing chapter 11.
That is why I said initially that Klipsch may have picked the wrong store as a new distribution channel for their speakers. Here is some information :
http://digg.com/tech_news/Circuit_City_to_close_stores
orlandosentinel.com — The closings will take place over the next six months at an expected total cost of $85 million to $105 million, all to be incurred in the current fourth fiscal quarter, which ends Feb. 28
http://newsroom.circuitcity.com/releasedetail.cfm?ReleaseID=155982
Circuit City Announces 19 Superstore Closings as Part of Its Ongoing Initiatives to Improve Financial Performance
Company Also Announces Closures of Five Regional Offices and One Distribution Center, Sale of a Corporate Building
RICHMOND, Va., Feb 16, 2005 /PRNewswire-FirstCall via COMTEX/ -- Circuit City Stores, Inc. today announced the closing of 19 Superstores, five regional offices and one distribution center by the end of the month, as well as the sale of a corporate building, continuing its initiatives to improve the company's overall financial performance.
"Based on our continuing analysis of markets across the country, we have identified 19 Superstores located in trade areas that we believe can no longer support a Circuit City Superstore, leaving the locations with no reasonable expectation of positive cash flow and without relocation opportunities over the near term," said W. Alan McCollough, chairman and chief executive officer of Circuit City Stores, Inc. "In many of the larger markets in which we are closing stores, we have added incremental stores in more vital trade areas or relocated stores to more attractive sites. The repositioning of our stores within these markets continues, and it no longer makes financial sense to keep some of the stores in those markets open."
In the fourth quarter of the current fiscal year, Circuit City expects to incur expenses of approximately $30 million after tax in conjunction with the store and regional office closings. The costs relate primarily to lease terminations, fixed asset disposals and, to a lesser extent, severance and other costs. The 19 stores combined had revenues of $170 million for the 12- month period ended December 31, 2004.
In most cases, Circuit City customers who are affected by the store closings will have the option of shopping at a nearby Circuit City Superstore. All customers will be able to shop with Circuit City on the Web at
http://www.circuitcity.com or over the telephone at 1-800-THE-CITY. The closing stores will not open today or tomorrow, but will reopen on Friday, February 18, for a close-out sale of display merchandise.
In addition to the store closings, the company will close a distribution center located in Doswell, Va. The 400,000 square foot facility will close at the end of the month. Expenses associated with the distribution center closing are not expected to be material. After a transition period, the company expects a reduction in inventory as the company shifts store replenishment distribution to its other nine distribution centers.
The company also sold one of the buildings at its corporate headquarters campus to Perimeter Center, LLC., an affiliate of Daniel Realty. The 188,120 square foot building, known as Deep Run II, opened in July 1994. The transaction resulted in a gain of approximately $1.8 million after tax, and the elimination of $12.6 million of long-term debt associated with the operating lease arrangement from the company's consolidated balance sheet.
