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Circuit City Seeks Approval To Liquidate U.S. Business

rdowns

macrumors Penryn
Original poster
Jul 11, 2003
27,397
12,513
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Bankrupt retailer Circuit City Stores (CCTYQ.PK) said on Friday it will liquidate its assets after it failed to reach a deal with creditors and lenders regarding a potential sale of the company.

Circuit City, the second-largest U.S. specialty electronics retailer, was due to present the results of an auction for its assets at a hearing in U.S.

Bankruptcy Court in Richmond, Virginia, on Friday.
It had conducted negotiations with potential bidders to sell the company, but had advised that liquidation was possible if no deal was reached.
 

PlaceofDis

macrumors Core
Jan 6, 2004
19,240
5
saw this earlier.

i can't say its surprising that they weren't able to find a backer given their downward trend over the past few years, and the current economic climate. i never really liked their stores, but the one bad thing about them going away is that this will give Best Buy even more power and bargaining clout when they surely do not need it.
 
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redwarrior

macrumors 603
Apr 7, 2008
5,573
4
in the Dawg house
I rarely go into stores like that anymore, partly because I don't live near any, but I get very irritated with all the salespeople who know absolutely nothing and try to act like they do.
/rant

Maybe at least there will be some good buys as they drop their merchandise? One can hope.
 
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GoCubsGo

macrumors Nehalem
Feb 19, 2005
35,741
148
This makes me think about the $66 protection plan I bought on the speakers I just purchased. If it is backed by CC then I am screwed. Good news is that I haven't opened the speakers yet so I can always take them back and order them from Amazon.
 
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GoCubsGo

macrumors Nehalem
Feb 19, 2005
35,741
148
Apparently calling their protection plan # 800-395-4377 results in getting hung up on because they're inundated with calls. :rolleyes: I called CC where I purchased the system and they said that the warranty is covered by Assurance Solutions and not CC, therefore, regardless of what happens to CC I am still covered.

Now to hold out on buying the sub until I see what happens to them. :D
 
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Sun Baked

macrumors G5
May 19, 2002
14,859
57
Not unexpected, they hired a liquidation specialist in November instead of a turn around firm.

Sort of surprising that they waited til after the holidays to announce the liquidation.
 
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Abstract

macrumors Penryn
Dec 27, 2002
24,561
403
Location Location Location
What makes Best Buy so much better than Circuit City that one can survive and the other can barely make it even in a healthy economy? I just don't see a big difference. They're both big, they both sell a lot of electronics, and neither of them employ knowledgeable, helpful employees. :confused:
 
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mondesi43

macrumors regular
Aug 27, 2007
195
0
What makes Best Buy so much better than Circuit City that one can survive and the other can barely make it even in a healthy economy? I just don't see a big difference. They're both big, they both sell a lot of electronics, and neither of them employ knowledgeable, helpful employees. :confused:

My cousin worked there and was very knowedgable. One of my friends is a manager and also smart with the products. I'm pissed because there goes my electronics hook-up. Just when I need a new LCD and surround system. :mad:
 
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leekohler

macrumors G5
Dec 22, 2004
14,164
21
Chicago, Illinois
What makes Best Buy so much better than Circuit City that one can survive and the other can barely make it even in a healthy economy? I just don't see a big difference. They're both big, they both sell a lot of electronics, and neither of them employ knowledgeable, helpful employees. :confused:

I've always had a good experience at Best Buy and always buy my computers from them. The financing deals are great.
 
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PlaceofDis

macrumors Core
Jan 6, 2004
19,240
5
What makes Best Buy so much better than Circuit City that one can survive and the other can barely make it even in a healthy economy? I just don't see a big difference. They're both big, they both sell a lot of electronics, and neither of them employ knowledgeable, helpful employees. :confused:

i think a lot of it is advertising, store placement, store setup, and pricing.

i rarely ever saw CC ads, and even fewer stores by the right malls. also any CC that i have walked into has been dimly lit and a bit dark, even confusing to walk around it and find things. best buy is clearly lit and well marked. their prices might not have differed greatly, but i know its much easier to spot, and find a best buy by me, along with them probably having better relations with the wholesalers.

just speculation on my part though.
 
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rdowns

macrumors Penryn
Original poster
Jul 11, 2003
27,397
12,513
Best Buy has far better store locations and markets themselves much better. As an example, everyone knows of the Geek Squad, who the hell knows of Firedog?

I also found CC stores to be poorly laid out and always seemed to have a lot of empty shelves.

Best Buy still has plenty of competition though. The Walmarts and Targets of the world have taken market share from the big electronics retailers. There are several, strong regional electronics chains around the country, not to mention the Internet.
 
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aross99

macrumors 68000
Dec 17, 2006
1,538
0
East Lansing, MI
It cracks me up when people complain about the staff not knowing anything about the products. Seems like most people here would expect to know more than the people at Circuit City or Best buy.

I'm going to miss the competition for Best Buy and 2nd source for the types of things they carry. I felt the same way when we lost Comp USA...

For things that you choose to buy locally, this is one less choice...

Best Buy still has plenty of competition though. The Walmarts and Targets of the world have taken market share from the big electronics retailers. There are several, strong regional electronics chains around the country, not to mention the Internet.

Do you really think Walmart or Target provide competition for Best Buy? I guess they do on some levels, but they stock only a fraction of the stuff @ Best Buy or Circuit City...
 
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Old Muley

macrumors 6502a
Jan 6, 2009
760
183
Titletown USA
It cracks me up when people complain about the staff not knowing anything about the products.

The one and only time I was into a Circuit City, I saw something that bothers me to this day. A hispanic woman and her child were there and clearly she spoke minimal English. She approached two "salesmen" and from what I heard I think she was looking for the bathroom. The two knucklehead "salesmen" gave her a really hard time, and were clearly trying to be as unhelpful as possible. Finally the directed her to the bathroom, the one proceeded to make sexual gestures behind her back while the other pranced around pretending to have to go to the bathroom. Both guys were talking in their best Spanglish accents and whooped it up at this poor woman's expense. I was so disgusted I turned around and walked out of the store.
 
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MacRumors

macrumors bot
Apr 12, 2001
51,543
13,168
Circuit City Seeks Approval To Liquidate U.S. Business

https://www.macrumors.com/images/macrumorsthreadlogodarkd.png

Circuit City announced today that it is seeking bankruptcy court approval to liquidate its U.S. assets including the shutdown of its remaining U.S. stores. The company has already received approval from four companies to start the liquidation process.

"We are extremely disappointed by this outcome. The company had been in continuous negotiations regarding a going concern transaction. Regrettably for the more than 30,000 employees of Circuit City and our loyal customers, we were unable to reach an agreement with our creditors and lenders to structure a going-concern transaction in the limited timeframe available, and so this is the only possible path for our company," said James A. Marcum, vice chairman and acting president and chief executive officer for Circuit City Stores, Inc.

If approved, the company would hold a liquidation sale Saturday, January 17th, through March 31st at all U.S. retail locations.

Circuit City is the second largest U.S. retailer behind Best Buy. While Circuit City does not sell Apple computers or iPhones, they do sell iPods and a variety of 3rd party accessories in addition to other electronics gear.

Article Link: Circuit City Seeks Approval To Liquidate U.S. Business
 
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TechnoGurus

macrumors newbie
Jan 16, 2009
4
0
West Palm Beach, FL USA
CompUSA is back!!

I'm going to miss the competition for Best Buy and 2nd source for the types of things they carry. I felt the same way when we lost Comp USA...

*Actually*, CompUSA is back, revamped and selling TVs and everything else Best Buy sells, I imagine... haven't compared any prices yet though....

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a clip from compUSA's new website
 
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dXTC

macrumors 68020
Oct 30, 2006
2,033
50
Up, up in my studio, studio
Maybe at least there will be some good buys as they drop their merchandise? One can hope.

Don't hold your breath. The same liquidators that sold off CompUSA's assets is managing the Circuit City sales. Their MO is to mark everything back up to the highest list price on the market, then take progressive percentages off from that. Better deals are often to be had from online or even at other B&Ms.

I stopped by a local CC that was in the earlier rounds of closing a couple of months ago. Sure, it was marked 10, 15, 20% off-- the original list price, not whatever discount price CC may have had before the liquidation. Most of the complete computer sets had been moved to other stores or back to the manufacturers, so what remained were one-offs and a couple of floor-display items.

My local CompUSA's closeout sale did have some bargains, though. I got Applecare for my iMac for 50% off, and picked up a dock for my 2nd-gen iPod nano-- the one Apple made specifically for that model-- for $2, in really good condition for a display model.
 
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Music_Producer

macrumors 68000
Sep 25, 2004
1,626
5
Both guys were talking in their best Spanglish accents and whooped it up at this poor woman's expense. I was so disgusted I turned around and walked out of the store.

Idiots like those are everywhere.. can't generalize based on one incident. In my area the CCity is much better than BBuy - the staff is helpful, knowledgeable and not pushy at all, but are there to help if required.

The BBuy staff are a bunch of teens who don't know the difference between hard drive size and RAM (I would think teens are more computer savvy!) They're nowhere to be found.. sucks that CCity is closing.. got a lot of stuff from there. :(
 
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atszyman

macrumors 68020
Sep 16, 2003
2,437
15
The Dallas 'burbs
What makes Best Buy so much better than Circuit City that one can survive and the other can barely make it even in a healthy economy? I just don't see a big difference. They're both big, they both sell a lot of electronics, and neither of them employ knowledgeable, helpful employees. :confused:

I always thought, probably incorrectly, that CC employees got commissions on the sales, while BB employees do not. Therefore CC employees have a tendency to come of as being "pushy" where BB employees seem more "helpful." I find myself buying more stuff at BB, I do liken it to a religion though. CC and BB both have their fans and detractors, and there really is very little compelling reason to chose one over the other.
 
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miggitymac

macrumors 6502a
Jan 7, 2009
585
1
The one and only time I was into a Circuit City, I saw something that bothers me to this day. A hispanic woman and her child were there and clearly she spoke minimal English. She approached two "salesmen" and from what I heard I think she was looking for the bathroom. The two knucklehead "salesmen" gave her a really hard time, and were clearly trying to be as unhelpful as possible. Finally the directed her to the bathroom, the one proceeded to make sexual gestures behind her back while the other pranced around pretending to have to go to the bathroom. Both guys were talking in their best Spanglish accents and whooped it up at this poor woman's expense. I was so disgusted I turned around and walked out of the store.

You shoulda got them fired.
 
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GeekLawyer

macrumors 68020
*Actually*, CompUSA is back, revamped and selling TVs and everything else Best Buy sells, I imagine... haven't compared any prices yet though....

a clip from compUSA's new website

Sort of. TigerDirect bought CompUSA's remaining assets, including their trade name. They also operate a number of outlet retail stores, still, under the CompUSA name. But it's really TigerDirect.
 
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miggitymac

macrumors 6502a
Jan 7, 2009
585
1
Idiots like those are everywhere.. can't generalize based on one incident. In my area the CCity is much better than BBuy - the staff is helpful, knowledgeable and not pushy at all, but are there to help if required.

The BBuy staff are a bunch of teens who don't know the difference between hard drive size and RAM (I would think teens are more computer savvy!) They're nowhere to be found.. sucks that CCity is closing.. got a lot of stuff from there. :(

You just gotta find the teen workers who are gamers...the WoWers who have custom built their towers so they don't lag in battles.:p
 
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