Circuit City Liquidates Remaining Stores

[TLS Guy]

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.

I agree. I think this whole concept of stimulus packages is flawed and potentially very dangerous. If it does not work, then it could make recovery impossible for a hundred years or more.

I agree, we need to take the pain now, and it will be a lot, and then let things regenerate the way they should. This will allow for recovery without stifling it with an impossible debt burden, or worse hyperinflation from printing money.

We don't need unseemly haste about this and artificial dead lines. This all needs to be pondered very carefully. Too big to fail is faulty reasoning. I would let Citicorp and Bank of America go insolvent and let the FDIC into to protect the depositors.

 

[jinjuku]

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.

It isn't that you wouldn't want too, the issue is that a sizeable percentage will and should come down. Over building means exactly that: Over building...

I was in Aurora Ohio and saw what I thought was a closed down Wal-Mart. I drove another two miles and there was the new Wal-Mart. There is something extremely wrong with that.

 

[jinjuku]

I'm not so much of an optimist as I am just for the free market

I am not sure how much more 'free market' mentality we can absorb

 

[irishtom]

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.

Many people had the same reaction as you, I think that's what really put them down the tubes.

 

[cym_city]

I am not sure how much more 'free market' mentality we can absorb

I really hesitated to add that in there. I didn't want to come across as a extreme propagandist. Too late. As brief as I can since it's time to leave work. In my opinion we haven't been in as free of a market as it is made out to be. I'm not talking about complete deregulation. Some oversight can be good. Especially in regards to standards. But its the regulation that empowers the lobbyist and it doesn't prevent corruption. I'd like to think most of us can agree that the SEC is about as regulated as it can be that didn't stop

 

[murl]

I checked their site for something and a message showed up when I tried to go to another page and it said the site was closed as they were updating their special offers.

 

[CraigV]

From a Yahoo clumnist:

The biggest consumer tech chain in the U.S. besides Best Buy, Circuit City filed for bankruptcy protection back in November. As Bloomberg notes, the struggling company had been looking for a buyer as late as Thursday, but failed to find any takers.

Of course, news of the Circuit City liquidation sale will draw plenty of bargain hunters, but (as I've blogged before), buyer beware.

Typically, closeout sales are final: no refunds or exchanges, so think twice before snapping up a big-ticket item like an HDTV. Also, keep in mind that closeout prices often aren't as rock-bottom low as you'd think; make sure to comparison shop online, and don't be fooled by big "75% OFF!" signs on items that have been marked up.

Finally ... a deep bow to Circuit City in general, where I've spent countless hours of browsing (and drooling)—and if nothing else, when it comes to tech retailers, less competition is never a good thing.

Update: Many of you are wondering what happens to the extended warranties you bought from Circuit City. I have an e-mail in to Circuit City's public relations department and will let you know as soon as I hear back. In the meantime, here's some general info straight from the Better Business Bureau:


The validity of any outstanding warranties varies for each bankruptcy. If a retailer goes out of business, the consumer may be able to rely on the manufacturer’s warranty. If a manufacturer goes out of business, the consumer may be able to rely on any warranties provided by the retailer. Many extended warranties and service plans are provided and administered by third parties and are typically not affected by a retailer or manufacturer going bust.

 

[murl]

I just bought a denon there but didn't get the extended warranty. If I find a blu ray player I like I may pick one up.

 

[TLS Guy]

I really hesitated to add that in there. I didn't want to come across as a extreme propagandist. Too late. As brief as I can since it's time to leave work. In my opinion we haven't been in as free of a market as it is made out to be. I'm not talking about complete deregulation. Some oversight can be good. Especially in regards to standards. But its the regulation that empowers the lobbyist and it doesn't prevent corruption. I'd like to think most of us can agree that the SEC is about as regulated as it can be that didn't stop

It's not the free market at all. This crisis is entirely founded on severe lapses of personal ethics. To wit; lying, cheating, reckless gambling with other peoples money, and I'm sure much larger doses of gross criminal conduct, that has not yet bubbled up to the light of day. Those are the core issues.

Any way this stone will gather moss at an exponential rate, and it will hurt a lot of people.

We are holding a little house warming party at our Eagan town home tomorrow night.

I went to get the Cheeses at a specialist shop run by a nice young woman for the last three years. I found her upset and removing the last of her inventory from the store.

She had a nice business not only selling cheese but offering a superior catering service.

This is going to get very rough I'm afraid. I wish I could put those so called "Masters of the Universe" and a good number of our CEOs in old medieval pillory and chuck rotten fruit and vegetables at them.

 

[jinjuku]

It's not the free market at all. This crisis is entirely founded on severe lapses of personal ethics. To wit; lying, cheating, reckless gambling with other peoples money, and I'm sure much larger doses of gross criminal conduct, that has not yet bubbled up to the light of day. Those are the core issues.

Any way this stone will gather moss at an exponential rate, and it will hurt a lot of people.

We are holding a little house warming party at our Eagan town home tomorrow night.

I went to get the Cheeses at a specialist shop run by a nice young woman for the last three years. I found her upset and removing the last of her inventory from the store.

She had a nice business not only selling cheese but offering a superior catering service.

This is going to get very rough I'm afraid. I wish I could put those so called "Masters of the Universe" and a good number of our CEOs in old medieval pillory and chuck rotten fruit and vegetables at them.

There is one more shoe to drop in the housing market: 7 year ARMS are going to be resetting.

1. Overbuild of houses
2. Irresponsible (car) industry
3. Overbuild of retail
4. Over lending of credit / mis-lending
5. Crazy investment models that amount to a get rich quick scheme (for the guy that devised the investment model)
6. Americans that refuse to save
7. Two Wars
8. The needle in our arm that is oil addiction that we refuse to get off of

This is going to be a heck of a ride for about the next 6 years.

 

[cym_city]

There is one more shoe to drop in the housing market: 7 year ARMS are going to be resetting.

1. Overbuild of houses
2. Irresponsible (car) industry
3. Overbuild of retail
4. Over lending of credit / mis-lending
5. Crazy investment models that amount to a get rich quick scheme (for the guy that devised the investment model)
6. Americans that refuse to save
7. Two Wars
8. The needle in our arm that is oil addiction that we refuse to get off of

This is going to be a heck of a ride for about the next 6 years.

Couldn't agree with you more. On the other end of the spectrum though, for the people who have stayed within their means and have good rainy day fund stashed away, there are going to be some deals to be had.......hopefully.

 

[tattoo_Dan]

circuitcity.com is already closed http://www.circuitcity.com/closed.html

 

[Adam]

circuitcity.com is already closed http://www.circuitcity.com/closed.html

Thanks for that update.

For those wondering, according to the site the extended warranties are covered by a third party and are not affected by this.

 

[Starmax]

It's not the free market at all. This crisis is entirely founded on severe lapses of personal ethics. To wit; lying, cheating, reckless gambling with other peoples money, and I'm sure much larger doses of gross criminal conduct, that has not yet bubbled up to the light of day. Those are the core issues.

Don't you think the basic nature of a free market helps fan the flames of lapses of personal ethics, lying, cheating, etc.? A free market is a great idea...until you add human beings.

 

[Starmax]

Yo Glocks...

I know where I'll be going tomorrow!

I'm up the road from you in Salisbury, and I plan to be at our CC first thing this morning. I'll let ya know what kind of deals are going down...if they're legit or not. Don't know if we have the same liquidators as the Charlotte market, but let me know how good the deals are down there, and we can compare.

 

[TLS Guy]

It's not the free market at all. This crisis is entirely founded on severe lapses of personal ethics. To wit; lying, cheating, reckless gambling with other peoples money, and I'm sure much larger doses of gross criminal conduct, that has not yet bubbled up to the light of day. Those are the core issues.

Don't you think the basic nature of a free market helps fan the flames of lapses of personal ethics, lying, cheating, etc.? A free market is a great idea...until you add human beings.

No, I don't. It's what your mother and father taught you. I don't think your moral compass is defined by what sort of economic system you grow up and live under.

 

[Starmax]

Hmmm...

Hitler supposedly had very nice parents. Economic systems have very much to do with testing our purported moral compasses. Some resist the temptation of greed, others obviously don't, in spite of their best intentions. And it doesn't take many who succumb to the dark side to seriously throw the entire system out of kilter.

 

[TLS Guy]

Hitler supposedly had very nice parents. Economic systems have very much to do with testing our purported moral compasses. Some resist the temptation of greed, others obviously don't, in spite of their best intentions. And it doesn't take many who succumb to the dark side to seriously throw the entire system out of kilter.

You have made my point. Good citizens earn and deserve their freedom, evil citizens earn repressive regulation.

Any society has to reflect the quality of its citizens. Just think of the responsibility the sewers who inhabit Hollywood have in all this.

 

[jinjuku]

How to spot a store full of idiots

I just got back from the Ann Arbor Circuit City. There is a sign on the door that says: No Checks, No Credit Cards, and No RETURNS.

1st off, just say "CASH ONLY"

So I go in to look at floor standing speakers. They have the Klipsch Synergy F-3 at $479 each. Keep in mind that Klipsch list the MSRP at $950/pair on their website. They are $8 HIGHER than MSRP.

So the 'Liquidation' works as such:

10% off electronics
20% off DVD/CD's
30% off furniture

Are they out of their freaking mind?! Cash only sales and only 10% off of stuff that is listed HIGHER than the MSRP? No wonder they are going under.

People are lined up in droves over there.

 

[Adam]

Rip-off pricing aside, I'd stay away from buying merchandise at a big box store that couldn't be returned. What if it didn't work, had issues, or was broken straight out of the box? No thanks.