Circuit City to liquidate remaining US stores

They were working on chapter 11 to refinance so on and so forth.

Well, it did not workout and they are being forced to liquidate.

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.

Yahoo News
Rueters






[edit on 1/16/2009 by mrmonsoon]

I wonder if much of this is taken or sent back, auctioned etc. There must be a warehouse somehwere. I have my doubts I would be getting a better deal than most others. I would probably end up with some damaged or defective merchandise. A display may actually be the best deal? idk My only interest now would be a TV or computer.Possibly some software programs.

I feel sorry those employees. Now I guess that Best Buy and Wal-Mart will pick up the slack. Circuit City never seemed though to have the best deals when I was in the market for electronics. I wonder how much of this is self inflected mismanagement and how much has to do with the down spiral in the economy. Or was it both and just bad timing?

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.

Circuit City was on slow demise in my area for quite a while. They closed the first store more than 2 years ago in an extremely busy shopping area no less. The remaining stores closed within the last 8 months.

Mega electronics stores come and go like a breeze in my area. Before Best Buy and Circuit City we had Sun TV and Fretter, BEST products and Jewel Mart.

HH Gregg will be the next to fall.

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.

No, no, no... you're falling into a trap here. I stumbled across this article completely by accident last month while surfing. www.savingadvice.com...

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.

If you can find a warehouse outlet for a store in liquidation then, maybe you'll hit up some serious deals... but aside from that, bankruptcy liquidation sales generally are bait & switch con jobs.

Get used to it! You are going to see plenty of headlines like that throughout 2009. The politicians and the media are lying to you - this is going to be another depression. The question is this: Was it intentionally engineered, and if so, why OR was this just due to gross negligence and malfeasance on the part of the banks and corporations?

The ever prestigious Neiman-Marcus store has recently laid off 400 people. The high end retailers are hurting also. I'm sure the likes of Saks has to be feeling the pinch also. Not a big market for $300 neck ties these days.

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.

www.bloomberg.com...

30 thousand people facing job loss.