Circuit City Seeks Approval To Liquidate U.S. Business

[JimmyDreams]

Wasn't Circuit City the SAME store that loudly proclaimed it's financial 'smarts' by firing all of it's highest paid workers about 2 years ago? They claimed it made sense to fire $25/hr store employees in favor of new-hired $10/hr employees.

Too bad they didn't realize that when they fired the $25/hr workers, they fired all the EXPERIENCE.

Shoppers quickly realized that the $10/hr workers didn't know HI DEF from DOLBY from a dishwasher and so they shopped elsewhere.

Imagine that. No customers. And now they're filing for bankruptcy. Sorry, so sympathy from me.

 

[63dot]

That is 1/100 of the available information to tell you why a complete and total depression is imminent. If you don't believe that now, and are someone who reads (not just ignores anything and everything thats not iPhone news), then you must be in fantasy land, because there is no other perspective at this point.

There is a wealth of information out there, but mostly I stick to trusted sources instead of blogs from smaller self published sources. Of course, that being said, many of the "trusted" sources like the Economist, CNN, the Federal Reserve, Lou Dobbs, and many with a reputation, did not see the Madoff scandal unfolding. Few saw the real estate crash, so a depression is possible, but imminent? By what sources or indicators? I am not asking you directly, but anybody who thinks that we are in a depression or headed there right away. A 6.1-6.9% percent unemployment rate is not good, but it's not 25% percent. A Dow losing half its value is not good, but compared to what? - overinflated stock in the first place?

Yes, there are a lot of factors. I am no economist, but more blame can be put on the past 3 US Presidents than on just W. (btw...I am a liberal who voted green party)

 

[alexbates]

Wasn't Circuit City the SAME store that loudly proclaimed it's financial 'smarts' by firing all of it's highest paid workers about 2 years ago? They claimed it made sense to fire $25/hr store employees in favor of new-hired $10/hr employees.

Too bad they didn't realize that when they fired the $25/hr workers, they fired all the EXPERIENCE.

Shoppers quickly realized that the $10/hr workers didn't know HI DEF from DOLBY from a dishwasher and so they shopped elsewhere.

Imagine that. No customers. And now they're filing for bankruptcy. Sorry, so sympathy from me.

Yeah, the way they do business doesn't make much sense. I bought an iPod Shuffle there a few years ago, and the guys working there couldn't answer any of my questions. Also, I was the ONLY one in the store besides about 4 workers. They were just standing around talking the whole time I was in there. That explains why they are going out of business.

Best Buy is a whole different story. There are always a ton of people in there and the workers are smart and know what they are talking about.

 

[rlmccormick]

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.

Good luck with that. I purchased an iPhone alarm clock and wanted to take it back. They would not take any purchase back that had been made more than 14 days earlier. I'm not sure if that was a new policy or related to the closing but it definitely pissed me off.

 

[oban14]

Well not all the "deals" were bad. I ended up buying a TV with a list of $1099 for $746. It was already on sale(the sale was ending today) so I got 10% off the already reduced price.

We don't know if that's a good deal unless you post the name and model of the TV.

You could have bought it at Amazon with no tax, no shipping, and still be able to return it in 30 days. And Amazon has stuff online at 30% off all the time.

 

[jazz4ivo]

Junk

What the heck does this have to do with Mac or Apple rumors?? What's next articles about the zoo??

 

[slinky0390]

What the heck does this have to do with Mac or Apple rumors?? What's next articles about the zoo??

Actually, if a zoo decided to start selling apple products it is quite possible. This story is relevant because Circuit City, albeit not a major distributer of apple products, did sell iPods and such. So lets hypothetically say that CC made up for 5% of apple sales, apple has now just lost 5% of their sales. Seems like Mac/Apple news to me.

 

[bbyrdhouse]

Good God what are they thinking? Trying to make enough to pay their employees for the last 3 months? What crooks. Why don't we boycott until they start putting up some "real" sales. Geez.

I stand corrected ... perhaps they should actually increase their prices during their liquidation sale to meet all of their obligations.


My point was simply that Circuit City prices were significantly higher than the other big box stores in my area and I suspect that that is part of the reason they having to liquidate at all.

I agree with several of the previous poster that Circuit City was continually stocked with either overpriced items or poorly chosen items.

Their sales staff was no less knowledgeable than Best Buy but certainly no more.

(FTR: I find the average sales help at any of the big box stores to be 1 level above Homer Simpson)

 

[oban14]

I stand corrected ... perhaps they should actually increase their prices during their liquidation sale to meet all of their obligations.


My point was simply that Circuit City prices were significantly higher than the other big box stores in my area and I suspect that that is part of the reason they having to liquidate at all.

I agree with several of the previous poster that Circuit City was continually stocked with either overpriced items or poorly chosen items.

Their sales staff was no less knowledgeable than Best Buy but certainly no more.

(FTR: I find the average sales help at any of the big box stores to be 1 level above Homer Simpson)

This is the nature of the game for liquidations. Start it at 30% off, some suckers buy stuff. Then 40%, then 50%, until you're left with real crap going for 80% off.

They might even have a deal with someone who is willing to buy any unsold stock for 75% off MSRP or something similar.

 

[megfilmworks]

Another difference between BB and CC:
CC had low ceilings, badly lit and claustrophobic layout.
BB has the large open, high ceiling, well lit space.
And BB has that order online pickup at store which helps as well.

 

[rhumbaclave]

Another difference between BB and CC:
CC had low ceilings, badly lit and claustrophobic layout.
BB has the large open, high ceiling, well lit space.
And BB has that order online pickup at store which helps as well.

My CC had the instore pick up before BB.

This is good news for custom installers who provide non discounted prices on equipment but far superior customer service. Firedog was terrible I would have never let them install a projector, plasma, or LCD.

However, Walmart will absorb most of their business making them compete even more with Best Buy as the #1 electronics retailer in the US.

 

[jazz4ivo]

Actually, if a zoo decided to start selling apple products it is quite possible. This story is relevant because Circuit City, albeit not a major distributer of apple products, did sell iPods and such. So lets hypothetically say that CC made up for 5% of apple sales, apple has now just lost 5% of their sales. Seems like Mac/Apple news to me.

I see your point but that does not mean that Apple will loose sales. Those people who shopped at CC would simply go somewhere else to make their purchases.

 

[cdinca]

Another difference between BB and CC:
CC had low ceilings, badly lit and claustrophobic layout.
BB has the large open, high ceiling, well lit space.
And BB has that order online pickup at store which helps as well.

People keep saying this ceiling thing. The circuit city near me was about 5 years old and I never noticed a ceiling issue. Maybe most best buys are just newer than most circuit cities.

 

[Explorz]

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.

I have to disagree. My local Best Buy has sales folks who are knowledgeable and eager to help. I know that's not always the norm, but I've found Best Buy seems to be paying much more attention these days to knowing their stuff. I always make sure I ask for the person most knowledgeable in the area I'm shopping. Whereas Circuit City was always abysmal. Plus they had a hefty restocking fee. Best Buy just said _ "Bring it back if you don't like it." I always felt like Circuit City just didn't really want my business

 

[dwl017]

Wait until they are all gone! everyone will be singing a different tune then. Many more retailers will go under during 2009 leaving the convenience of running down to your local store a thing of the past. We are moving towards a society where social interaction will be a thing of the past.

Personally I enjoy the experience of being able to walk into my local store where I can touch and feel before I buy.

Its pretty sad when someone sitting right beside you prefer to text you then speak to you.

 

[63dot]

What the heck does this have to do with Mac or Apple rumors?? What's next articles about the zoo??

My CC has a lot of iPods and iPod after market stuff, but not on sale to any great degree yet. They did have some old iPods and sold them off very cheap, but way before the bankruptcy.

Nearby in the mall is Costco and sometimes they get a past generation Mac line and sell it very cheap as well as iPods. I keep an eye open but so far nothing big yet.

 

[dXTC]

Actually Gordon Brothers handled CompUSA. It appears that these guys are doing Circuit City.

I stand corrected.

I had half a notion to go to my local CC this weekend just to watch the crowd, but then common sense prevailed.

 

[slinky0390]

I see your point but that does not mean that Apple will loose sales. Those people who shopped at CC would simply go somewhere else to make their purchases.

Yes and no, there are many factors that influence this, but don't think of it at the consumer level, think more globally. Apple supplies retailers to supply consumers, regardless of how many consumers bought the product, the retailers were still paying Apple for the product they supply. Since CC went out of business, Apple has one less retail outlet to receive revenue from. However, Best Buy or store X,Y,and Z could just order more and pick up CC's slack. Like I said, it really depends.

 

[63dot]

Yes and no, there are many factors that influence this, but don't think of it at the consumer level, think more globally. Apple supplies retailers to supply consumers, regardless of how many consumers bought the product, the retailers were still paying Apple for the product they supply. Since CC went out of business, Apple has one less retail outlet to receive revenue from. However, Best Buy or store X,Y,and Z could just order more and pick up CC's slack. Like I said, it really depends.

The CC around me is certainly a money maker for Apple as many young people just keep on buying iPods, one after another. Being older, I guess I just don't see why so many iPods get sold and it's rare that I meet a young person who only has one. It's very rare that I see an MP3 player that isn't an iPod. Before the Apple Store came into the mall recently, the main place to get the iPod line was at CC. Best Buy also didn't come to where I live until recently and Staples and Office Depot where I am don't have iPods from what I have seen going into those two places for office supplies.

In a way, CC did a lot for Apple in my town as everybody who didn't buy an iPod online bought it in the local CC store which covered a population of over 100,000 people in the region. At least, we do have a very small Apple Store and a Best Buy where one can buy an iPod in person. There is also a small independent store that sells Macs so between those three outlets, there is a choice if one is in a pinch to buy an iPod that day.

 

[apsterling]

I'd take advantage but they already abandoned Phoenix a few months ago.

 

[wkw]

I dropped in my local CC today, they were offering 30% off their overpriced cables, 20% off cd's and dvd's and 10% off everything else. I picked up a Neil Young CD at 20% off . 16 greatest hits nicely remastered for $7.88. what a bargain! I waited in line for about 15 minutes. The place was packed but orderly. I was surprised by the size of the crowd since the big ticket items weren't marked down that much. People seemed pretty stoked to get 10% off though. I didn't recognize any of the staff so I guess they brought in liquidator people to prevent disgruntled employees from looting haha. I took a look at the cables they had. No wonder CC is going under. $99 for a 2m HDMI cable? even at 30% off it is still ridiculously overpriced.

 

[rkdiddy]

Funny story...

I had $250 credit to CC, so I decided to go to the store on Saturday at opening.

Ended up finding a 32" LG LCD for my bedroom for $599 (before 10% off). Did a quick google on my BB and found the price was a little more expensive than some online Retailers, but it made sense to use my credit.

Anyways...

Long story short, DVD player went out, so I decided to go back today (Sunday) - the store was packed and the only TVs available were the display models. Walked past the one I purchased and the tag said it was now $649.

How cheesy is that, they marked the prices up since Saturday!

 

[VSMacOne]

The sales are CRAP! like 5-10% for most stuff, and I BET most of it was already marked up some. Their TVs and monitors were RIDICULOUSLY marked up.
But I guess most people will just see the SALE signs and think they're getting SUCH a good deal...

 

[wingnut8]

Did anyone happen to look at the video games at all? I was also hoping to possibly snag a 2nd gen Touch if I could, I'll probably just wait for a while and see what happens.

 

[GoCubsGo]

And BB has that order online pickup at store which helps as well.

So does CC. Actually, I think CC had it before BB.

I had purchased a receiver and speakers from CC two days before the liquidation was announced and it turned out the receiver was thought to be bad so I returned it. I parked in a loading zone because suddenly the already small parking lot was packed. I ran in, exchanged it and was walked out by a staff member. I asked him if the sales were so great that it would warrant "all this" (pointing to the store)? He laughed and said, "not even".

I'm sorry but those people who suddenly felt the urge to go to CC after all this time for 10% off a TV that was marked up the day before (and you were prevented from seeing their site so you had proof they were marked up) make me laugh.