Circuit City Liquidates Remaining Stores

[admin]

Circuit City Stores Inc., the nation's second-biggest consumer electronics retailer, said Friday 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. 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.

Discuss "Circuit City Liquidates Remaining Stores" here. Read the article.

 

[GlocksRock]

So I guess that's it for CC... what a bummer, I always preferred them over Best Buy, but now I guess I have one fewer option when shopping locally. Maybe there will be some good deals to be had.

 

[Space Ace]

I wonder what will happen to people who have extented warranties with CC that don't expire for several more years? I'm one of those people.

 

[GlocksRock]

So when can we expect to see the discounts at the local stores?

 

[Adam]

Wow. I certainly remember life before CC, but I am surprised to see a chain of that size go under. I'm not a fan of theirs, but I do wish the soon-to-be-unemployed folks good will and good luck.

 

[cym_city]

So when can we expect to see the discounts at the local stores?

I hope so. The last "liquidation" they had was a joke. One near my house was having a "liquidation sale" and their were absolutely no deals to be had, dispite the signs posted. They had an open box sony blu ray without the manual, for a whopping .03 cents off and wouldn't negotiate at all. Any sale price they had going I could beat just by looking on Amazon.

 

[TLS Guy]

Circuit City Stores Inc., the nation's second-biggest consumer electronics retailer, said Friday 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. 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.

Discuss "Circuit City Liquidates Remaining Stores" here. Read the article.

3000 or so of America's big box stores are forecast to befall for the same fate over the next 24 months.

This is going to create huge blots on the landscape. Basically the whole western economies have been Ponzi schemes. These stores, all leveraged, have used other peoples money to drive legitimate businesses off the map. The business model of all of them, is and was, predicated on sales growth. Without it failure is certain. That is a Ponzi scheme by any definition.

This in the Minneapolis Star Tribune this morning, which itself announced this morning it has filed for Chapter 11 bankruptcy protection.

This, according to some at MIT, is the real cause of the crisis and how all these over payed clowns have caused it.

The crisis is having serious world wide implications.

Peter Apps, by the way is my nephew. He was rendered a high Quadriplegic, covering the civil war in Sri Lanka for Reuters. He does not even have any hand or finger function, and has to control his wheel chair with his head. He was back at work for Reuters in less than 24 hours after discharge from rehab.

You can listen to his story in his own words, in an interview for BBC World Service outlook.

I spent significant time with him after the financial crash, last September, at Reuters on Canary Warf. His view and those of others at Reuters, is that we are in for at least a 30 year world wide depression, which stimulus packages may cushion slightly. Peter was very concerned that this crisis will blow out emerging markets, especially Russia Eastern Europe and the states of the former Soviet empire, and lead to WW III. He seemed to feel war with Russia more likely in the next few years than during the cold war.

The whole problem of the radical Muslim menace continuing to agitate the pot.

 

[GlocksRock]

I didn't get anything when they closed a store near me, but I did look... and when I went back to get something it was already sold out. But if I can find any good deals this time, I'm gonna jump on it.

 

[randy98ss]

I hope so. The last "liquidation" they had was a joke. One near my house was having a "liquidation sale" and their were absolutely no deals to be had, dispite the signs posted. They had an open box sony blu ray without the manual, for a whopping .03 cents off and wouldn't negotiate at all. Any sale price they had going I could beat just by looking on Amazon.

I had the same experience. I bought a tv/computer moniter for my daughters room at walmart for a really low price. So, I went to CC to try to get the same tv for my sons room, and even with the "30%" off it was $50 higher then at walmart.

 

[GlocksRock]

I saw this special done on tv recently about liquidators that many times raise the prices higher than what the normal retail price is, then advertise xx% off discounts, that in the end really don't save you anything, and in some cases the item actuall costs more than it did at the retail price. I think they do this for the average joe who doesn't know any better, will see 20%-50% off signs posted up and come in and buy something thinking they are getting a bargain, but really aren't.

 

[shenaniganz]

"Circuit City says it will begin a sale of its merchandise starting Saturday lasting through March 31." Got this from PCworld. Good hunting

 

[jinjuku]

3000 or so of America's big box stores are forecast to befall for the same fate over the next 24 months.

This is going to create huge blots on the landscape. Basically the whole western economies have been Ponzi schemes. These stores, all leveraged, have used other peoples money to drive legitimate businesses off the map. The business model of all of them, is and was, predicated on sales growth. Without it failure is certain. That is a Ponzi scheme by any definition.

Agreed, you know the Pharmacy build out is next. With a Walgreens/CVS/Rite Aid on every fricking corner (all to service the baby boomers). In about 15 years when the biggest wave of baby boomers crash, these will be the next eyesore to grace the landscape.

More cities need to adopt a plan where part of the build is a escrow fund that is used for the subsequent tear down. These funds sit collecting interest for either tear down or rehab of worn out retail space.

 

[GlocksRock]

"Circuit City says it will begin a sale of its merchandise starting Saturday lasting through March 31." Got this from PCworld. Good hunting

I know where I'll be going tomorrow!

 

[robmlisanti]

This is sad...I always had good service at CC...man what's next?

 

[GlocksRock]

hopefully nobody

 

[Pyrrho]

I wonder what will happen to people who have extented warranties with CC that don't expire for several more years? I'm one of those people.

That depends upon who is backing the warranty, and what exactly is happening to CC. There is a really good chance that the warranty will be worthless, but you will want to take a look at who is backing it (read the piece of paper they gave you), and pay attention to what exactly happens to CC before you give up on it. You could also contact CC about it.

Yet another reason not to buy extended warranties.

 

[Pyrrho]

Circuit City Stores Inc., the nation's second-biggest consumer electronics retailer, said Friday 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. 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.

Discuss "Circuit City Liquidates Remaining Stores" here. Read the article.

This is not terribly surprising, given their past efforts to save money by firing their long term employees and then rehiring some of them at reduced pay. Once they pulled that on their workers, I decided to never buy from them again. I say, good riddance to them. No one who treats workers like that deserves to stay in business.

 

[cym_city]

Agreed, you know the Pharmacy build out is next. With a Walgreens/CVS/Rite Aid on every fricking corner (all to service the baby boomers). In about 15 years when the biggest wave of baby boomers crash, these will be the next eyesore to grace the landscape.

More cities need to adopt a plan where part of the build is a escrow fund that is used for the subsequent tear down. These funds sit collecting interest for either tear down or rehab of worn out retail space.

Rite Aid is on the list of stores that will probably disappear this year so they probably won't last too much longer.

I wouldn't think you would want to tear down every building of a business that fails. They may be an eye sore sometimes but those buildings can be a resource for productive businesses or an opportunity for a small business get to off the ground.

 

[TLS Guy]

Rite Aid is on the list of stores that will probably disappear this year so they probably won't last too much longer.

I wouldn't think you would want to tear down every building of a business that fails. They may be an eye sore sometimes but those buildings can be a resource for productive businesses or an opportunity for a small business get to off the ground.

Nice to have an optimist in the bunch. However the overwhelming probability is that those buildings will fall down before anybody has any use for them.

This is serious. The bankers have lied! There are now credible reports that Citigroup and Bank of America may need at least another 1.5 trillion to keep them afloat. Get ready to join the third world.

 

[cym_city]

Nice to have an optimist in the bunch. However the overwhelming probability is that those buildings will fall down before anybody has any use for them.

This is serious. The bankers have lied! There are now credible reports that Citigroup and Bank of America may need at least another 1.5 trillion to keep them afloat. Get ready to join the third world.

I'm not so much of an optimist as I am just for the free market and I don't buy into the Keynesian theory that we can spend our way out of this. Especially since, as you pointed out in a previous post, overspending and credit got us into it. If anyone here has read Mises or any papers from the Austrian School , this has already been predicted as was the Great Depression years ago. This period of time is a correction in the market forces. Artificially low interest prices for extended periods of time caused an artificial increase (bubble) in our market. Our economy just like a rubber band, we stretched ourselves too thin and now we are snapping back to where we should be. We can either get it over with and hit bottom, or we can prolong the suffering. Just my opinion. Sorry for the rant.