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Circuit City Stores Inc., the nation's second-biggest consumer electronics retailer, reached an agreement with liquidators on Friday to sell the merchandise in its 567 U.S. stores after failing to find a buyer or a refinancing deal.
The company, which employs more than 30,000 employees, said in court papers it has appointed Great American Group LLC, Hudson Capital Partners LLC, SB Capital Group LLC and Tiger Capital Group LLC as liquidators.
Originally posted by mrmonsoon
When they were trying to stay in Business, they were closing like 150 stores.
I went to one for their fire sale.
He is the real issue, the item's i wanted/looked at, were "MORE" expensive than the everyday prices at it's competitors.
(games/blanlk cd/dvd's/video/sound cards....)
These were their special closing store deals to boot.
The liquidators run the show, not the retailer: When a company goes into bankruptcy, the retailer is no longer in charge. The liquidation companies operate the business, not the retailer. That means that they are not required to honor the policies of the retailer. They do not have to price match, price adjust, accept returns (even on merchandise that was purchased before the bankruptcy), or honor service agreements. In other words, everything you loved about your favorite retailer is gone, replaced by a liquidation company that is intent on wringing every dollar possible out of the sale.
Prices are often higher than or, at best, the same as other stores: When the liquidators take over, they often raise prices before marking the items down in order to make a little extra money. They know that people think liquidation sales offer bargains and will often buy without comparing prices. They take advantage of the consumer’s gullibility and there’s nothing illegal about it. So that toaster that was $15 before the liquidation sale now carries a “before sale” price of $20. Then the liquidator marks it down 25% which puts it back at $15. Many people think it’s a deal, not realizing that if they’d bought that same toaster before the “sale,” it would have been the same price.
Circuit City Starts Going-Out-of-Business Sales at U.S. Stores
By Mark Clothier and Steven Church
Jan. 17 (Bloomberg) -- Circuit City Stores Inc., the bankrupt consumer-electronics chain, starts going-out-of- business sales at its 567 U.S. stores today, the beginning of the end for a retailer that began selling televisions in 1949.
Revenue declines that started when Best Buy Co. and Wal- Mart Stores Inc. began offering TVs and computers at lower prices deepened as the U.S. entered a recession and vendors demanded that Circuit City pay up front for their goods. On Nov. 10, the Richmond, Virginia-based chain filed for bankruptcy protection after suppliers cut off credit.
At the time, Circuit City, which employs more than 30,000 people in the U.S., planned to continue operations after exiting Chapter 11. Negotiations with prospective buyers failed, and yesterday the company said it had agreed to hand its U.S. merchandise to a group of liquidators.