Circuit City Files for Bankruptcy Chapter 11

[admin]

Despite efforts to keep the system afloat, including shutting down more than 20 percent of its stores last week, Circuit City Stores has filed for bankruptcy. This year's economic downturn seems to have been too much for the Richmond, Virginia-based electronics giant, who has been struggling non-stop since last year to match sales with rival Best Buy and other big box stores.

Discuss "Circuit City Files for Bankruptcy Chapter 11" here. Read the article.

 

[jamie2112]

I am sorry to hear people are losing jobs before the holidays. I had a feeling this was coming after reading they were closing stores.I guess there will be some deals to be had in the near future....

 

[GlocksRock]

that's sad to hear, I hope they can pull through it and stay afloat.

 

[jfalk]

It depends on what sort of bankruptcy it is. CC already had to pay for inventory in cash. What a bankruptcy can do is to actually enable manufacturers to begin offering credit again on new shipments, since the company can, at least in principle, get new credit sources not encumbered by old claims. Of course, the plans don't always work ... as Linens 'N Things recently demonstrated.

 

[fmw]

It depends on what sort of bankruptcy it is. .

The headline says chapter 11. That would be a court supervised reorganization.

 

[soundhound]

woohoo, panny plasma here we come.

 

[majorloser]

One Down

Who's gonna be next?

 

[AcuDefTechGuy]

Who's gonna be next?

Not Best Buy, Not Wal-Mart, and Not Sam's Club.

 

[newb]

Who's next?

GM, Ford, and Chrysler! The banks, corporations, and the states!

 

[mtrycrafts]

woohoo, panny plasma here we come.

Went by there today to see what is on fire sale. Certainly not the BluRay discs, nor the TVs.

 

[ivseenbetter]

They should have just asked the government to bail them out...

 

[Halon451]

They should have just asked the government to bail them out...

Ah, beat me to it!

 

[mudrummer99]

Went by there today to see what is on fire sale. Certainly not the BluRay discs, nor the TVs.

More than likely they will get to send back BD's and TVs, along with a good choice of other products, since they are still sellable by the manufacturers.

 

[smurphy522]

They've been going down hill for the last 7 years (or when they decided to be more like BB and rid themselves of knowledgeable sales force). Sinced then I alsways saw them as the "Red Best Buy" only with slightly different products. On the A/V side 10 years ago, they were close to what BB has now with Magnolia. Every once in a while you find a sales person who at least knows what some of the products are. Circuit city was the first electronics mass merchant to have mandatory training for the sales force and readily had updates either via the vendors or the company internal training force.

As a past sales manager there I am sad to see this day but I had forseen this many years ago. All they have been trying to do for the last 10 years or so was to be like BB....their ultimate demise.

 

[haraldo]

Sad thing about all these people being out of a job right now at worst possible point in time

 

[MatthewB.]

I was there this past weekend and their "closeout sale" was B.S. What they did was jack the price of items up 25% and claim everything is 20% off. I checked out several items and knew they were far cheaper at Ultimate Electronics or Fry's and don't get me started on their bluray selection. They were higher costing than Wal-Mart and way more costly than Amazon.

I figure if they want their inventory gone they need to be in competition with internet pricing. But what amazed me even more were all the "sheep" who came in and were blindly buying all kinds of stuff without any research at all and thinking they were getting the deal of the century.

I even told one customer who was getting ready to spend a 1,200 on a POS Sony reciever that if he went to Fry's he could get the Onkyo 805 on closeout for half the cost and it is twice the reciever.

 

[MatthewB.]

Oh and they still had Monster HDMI cables for 120.00

 

[pzaur]

Just got back from the local "sale". Definitely a crock. DVDs and Blu-Ray are 20% off. Computers are 5%, including the "last one" in stock for models. Select TVs are 10%. Still a rip-off on all but the DVDs. Just picked up Transporter and Spider-Man 1 for $17.00. Not a bad cost for both.

-pat