Circuit City files for Chapter 11 Bankruptcy

Discussion in 'Current Events' started by ReanimationLP, Nov 2, 2008.

  1. ReanimationLP macrumors 68030

    ReanimationLP

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    #1
    http://consumerist.com/5074161/updated-breaking-circuit-city-closing-155-stores

    I was told the grim news Saturday night, but now that it has leaked to the press I am allowed to talk about it.

    I'm beyond crushed. My store is still going to stay open, but its hurtful to see so many people lose their jobs, so close to the holiday season with the economy the way it is currently.

    From what that says, and what I heard, all Firedog (PC In-Store, PC In-Home, TV Install, Car Install) are all getting terminated within 48 hours.

    I fear that this will do nothing but create a large domino effect, and Circuit City will completely close down within a year, just like CompUSA did.

    Don't expect huge discounts on things, because they sold it all to a liquidator, that is currently unnamed, but I'm betting money its Gordon Brothers. And they're notorious for marking things up then bringing them back down.

    You can find out what stores near you by using the Store Locator. If you dont see it there, then its gone.

    NOV 10 UPDATES -

    Circuit City filed for Chapter 11 bankruptcy.

    Gordon Brothers is handling the liquidations.

    So far, what I predicted last week is happening, where this is creating a domino effect.
     
  2. Brien macrumors 68020

    Brien

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    #2
    Yeah, generally once they 'down scale' they're toast. CompUSA, Mervyn's, and Linens N' Things all did that, and about 6 months later went totally under.

    And pretty much every liquidator sucks. I can't really ever recall seeing a good deal on a going out of business sale.
     
  3. blurredline macrumors 6502

    blurredline

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    #3
    Wow, Best Buy is turning profits, and Circuit City is going under. Odd times we live in.
     
  4. bassproguy07 macrumors 6502a

    bassproguy07

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    #4
    wow i just applied at circuit city, hope i dont get the job now......altough its for loss prevention/sales not install
     
  5. GoCubsGo macrumors Nehalem

    GoCubsGo

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    #5
    I kind of always wondered how they survived. At least in California Fry's electronics is pretty much where it seems to be at. That and Best Buy.

    Perhaps I'm mistaken. It is slightly surprising but not nearly as surprising as CompUSA going under.

    This begs the question ... how in the hell is Radio Shack still around?
     
  6. Brien macrumors 68020

    Brien

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    #6
    I'm guessing people actually listen when they try and get you to buy cell phones.
     
  7. bassproguy07 macrumors 6502a

    bassproguy07

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    #7
    yes i wonder that too, how is radio shack in business still? They are way over priced, only thing I ever bought were those micro RC cars called zip zaps...which broke all the time.
     
  8. ReanimationLP thread starter macrumors 68030

    ReanimationLP

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    #8
    I worked for RS too.

    Between cell phones, nifty gizmos, and odd and ends parts and cables.

    Cables, yes were marked up well, but no where NEAR as high as Circuit City or Best Buy.

    Only two things will survive a nuclear holocaust : Cockroaches and Radioshacks.
     
  9. Sun Baked macrumors G5

    Sun Baked

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    #9
    Well, the cockroaches are going to need somewhere to work. :p
     
  10. 63dot macrumors 603

    63dot

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    #10
    I know they had legal problems based on illegal employee termination issues, but many large corporations have scores of those. But litigation can be expensive and deadly for big companies in today's delicate economy, especially class action suits.

    As far as the products I have seen in Circuit City stores, they seem to be very solid, clean, and well-staffed. I wonder what is going to happen to other mega tech stores?

    I think the only thing keeping some Apple Store locations alive are the iPod and related accessories. While many of their higher end computers are amazing, they don't appear to be the type of thing many people buy in such a soft economy. Low end iMac, yes, and also Macbooks, but probably a record low sales number for Mac Pros and ultra large display monitors.
     
  11. sushi Moderator emeritus

    sushi

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    Sorry to hear. Always enjoyed visiting Circuit City stores and of course spending my hard earned dollars.

    Funny.

    Radioshack stores are convenient for electronic stuff if you don't want to mail order. Another favorite of mine when I visit the states.

    Mail order places are definitely affecting the brick store market. I know of many who visit the brick stores to try a product then order via mail order.
     
  12. MacNut macrumors Core

    MacNut

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    #12
    I went into Radio Shack the other day and all the goodies they used to sell are gone. They have a small corner of electronic parts and the rest is cell phones TV's and stuff you can get at Best Buy. I don't think the employees could even answer a technology question.
     
  13. Abstract macrumors Penryn

    Abstract

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    #13
    "Many" is still an understatement. Nearly everyone who's not totally unfamiliar with the internet does this, which is kind of sad, but then again, it's reality. This is why I don't understand why companies are still building mega-malls. Sure, people will go inside your store, but internet shopping saves consumers money, and more consumers are learning this every day. I think shopping malls will become fashion outlets with a food court, as I don't expect many types of other shops to survive. You need to try clothes on, and finding a particular pair of jeans is hard on the internet, so you're more likely to just go to the mall and buy such things. I can buy a $400 watch without trying it on. Same goes for a laptop, computer accessories (that I know are compatible), etc.
     
  14. ReanimationLP thread starter macrumors 68030

    ReanimationLP

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    #14
    Actually, the humorous thing is at the RadioShack I worked at, it took a lot of complaining at corporate and our DM for the electronic parts and such, as we were like the store you described at first, then after months of complaining we finally got all the parts and everything.

    Actually, some malls around here are already that. :/
     
  15. MasterNile macrumors 65816

    MasterNile

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    #15
    I much prefer Best Buy to Circuit City (for looking around and buying a few accessories now and then) but would often go to Circuit City instead because it was only like 4 miles from my house while the Best Buy was like 10 miles, but I think it was about a month or 2 ago the closest Circuit City closed down and now the only one that's close to me is the one in the same shopping center as the Best Buy that's 10 miles away, but on the bright side they're building a new Best Buy that's closer :)

    And there are 2 Apple stores in my city, one about 12 miles away and another about 21 miles
     
  16. echeck macrumors 68000

    echeck

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    #16
    Good to see my local store is still around, but to be honest I haven't spent any money there in over two years.

    I still go there every now and then (actually I went there Saturday for a few minutes), but it's usually just to window shop when I'm trying to kill time.

    I hope all those people are able to find new jobs quick. This is a hard time to be without a job.

    No way. Or if it does, it won't be for a very, very long time.

    We live in a society of instant gratification. There are millions of people (myself included) that would much rather go down to a local shop to pick up a product rather than find it on the internet and wait 5-7 business days for it to be shipped.

    Brick and mortar isn't going away anytime soon. Why are Apple Stores so successful if people just want to buy online?
     
  17. gilkisson macrumors 65816

    gilkisson

    #17
    Always a good test of a RadioShack: when the saleskid walks up, ask for transistor grease. If s/he gets irritated or laughs, you're in the right place.
     
  18. iJohnHenry macrumors P6

    iJohnHenry

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    #18
    Our Radio Shacks "converted" to The Source @ Circuit City.

    Wonder what's up with them, if anything? (But I think they are totally independent now.)
     
  19. iGary Guest

    iGary

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    #19
    At .41 a share, they won't last long and they don't have any cash to push them through what is expected to be a dismal Christmas.

    Best Buy won.

    Sorry for the folks who will be losing their jobs. :(
     
  20. gilkisson macrumors 65816

    gilkisson

    #20
    Which sucks earlobes... I have both a Circuit City and a Best Buy here... and cordially detest the smarmy you-dont-want-that-you-want-to-buy-THIS attitude of BB salesweasles.

    Ah well. Egghead, TigerDirect, et al and etc.... to the rescue.
     
  21. iGary Guest

    iGary

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    #21
    Yeah, I avoid Best Buy whenever possible, but I always went there before I went to Circuit City for some reason.

    Circuit City's stores just always felt so dark and gloomy to me. The help was better, though.
     
  22. Bobdude161 macrumors 65816

    Bobdude161

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    #22
    ReanimationLP, did you work at Best Buy? Just wondering.

    I'm sure my BBY managers are just jumping for joy that the Circuit City that is a mile a way is closing. We basically have a monopoly now in our location. Sure there's Target, Wal-mart and Staples close by, but they don't nearly have the selection. Wonder how they'll take advantage of that?
     
  23. dukebound85 macrumors P6

    dukebound85

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    #23
    this is old news that circuit city was struggling big time
     
  24. yoppie macrumors 6502a

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    #24
    LOL @ Mervyn's. I haven't heard that name in years, my mom used to shop for my school clothes there. Linens N' Things are still in business here in FL.

    As for Circuit City, I don't shop there much but none of the ones near me are closing. I guess they like South Florida.
     
  25. danny_w macrumors 601

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    #25
    I'm really sorry for all the employees that this affects; anytime is a bad time to lose your job, and now more so than most, with the economy the way it is now. However from my personal perspective Circuit City made 2 major blunders that completely killed it for me:

    1) They quit carrying appliances. CC used to be the best store in the area for discount appliances and I have bought quite a few ranges, diswashers, and refrigerators there. When they quit appliances it reduced my reasons to go there by quite a bit.

    2) The opened a new store in Arbor Walk across the freeway from Best Buy. They used to be located on the same side as BB and I would go there at least once per week as I made my rounds. Now that they have moved they are far less convenient, and Circuit City lost out to Best Buy for my shopping dollar. Now I only go there every few months.
     

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