Circuit City, Tweeters, Economic Crisis

[TheMoose]

http://www.engadget.com/2008/11/10/c...or-bankruptcy/

From Engadget,

Circuit City files for bankruptcy

Even after shutting down 155 retail stores and announcing plans to cut around 17% of its 43,000 employees, Circuit City couldn't avoid the dreaded bankruptcy court. Today, the Virginia-based company (along with 17 affiliates) petitioned for Chapter 11 protection in Richmond as it attempts to survive under the crushing pressure from Best Buy / Walmart. Beyond that, details about the outfit's future are unclear, though Best Buy has reportedly stated that it "might take over stores that distressed rivals close." Please, no.

[TheMoose]

http://gizmodo.com/5081886/circuit-city-goes-bankrupt

From Gizmodo,

After closing 155 stores last week, Circuit City has finally bitten the dust. The electronics store chain—with 721 stores in the US and 770 in Canada—has filed for Chapter 11 protection in the U.S. Bankruptcy Court in Richmond, Virginia, pressured by the recession and competition from Best Buy and Wal-Mart. A bitter end in less than a year to a store that started in 1949:

• January 2008: Increases a credit agreement from $500 to $1.3 billion.
• May 2008: Circuit City tries to sell itself to Blockbuster Inc., after the latter makes an offer that is later withdrawn. At this time, they fire employees with higher salaries and opens smallest stores.
• September 2008: Reports loss of $239.2 million, after sales fell for the sixth straight quarter.
• November 3: Last week they closed a fifth of their US stores, firing twenty percent of their 43,000-people workforce.
• November 10: Files for Chapter 11 bankruptcy protection. Lists $3.4 billion in assets and $2.32 billion in liabilities, owes HP $119 million and Samsung $116 million. It lost $5 billion in stock market value in just two years.

[wes]

Originally Posted by rex

Online retailers with less overhead, like Amazon, seem to be faring better. On the bright side, decreased consumer demand and a slightly stronger dollar will mean better bargains in the short term.

Yes the consumer wins with better prices and better customer service. Sorry to hear about all the lay-off that will happen.

Next is Worst Buy, hu sorry I meant Best Buy, these stores suck even more

[rlpiii]

Let the Fire Sales begin!

[jrbassman712]

circuit city has been slowly deteriorating. so sad.

sooner or later everything is gonna close and we're gonna survive off of these computers.

[ScottV]

Originally Posted by rlpiii

Let the Fire Sales begin!

It might be wishful thinking the way the economy is going but remember Chapter 11 is no liquidation - it is refinacing. Kmart was in chapter 11 and they ended up buying out Sears (for better or worse). I don't know about the rest of you but I prefer buying items like TVs from an actual store front where I can take a box home ( or back if it doesn't work) vs dealing with a mail order company. I think right now the problem is how many TVs can you sell - eventually everyone has one and they last a long time.

Scott