Circuit City files for Chapter 11 protection

CalvinHobbes

Diamond Member
Feb 27, 2004
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Originally posted by: Skoorb
Originally posted by: CalvinHobbes
http://finance.yahoo.com/news/...-for-apf-13515779.html

The Richmond, Virginia-based electronics retailer has been struggling as nervous consumers spend less and credit has become tighter. It filed for bankruptcy protection on Monday.


I hope I can still use my gift cards I've been saving up.
If there is a store still open near you, I would use them TODAY.

There is a store near me that is not one of the closing stores. I'll be buying stuff this week.
 

SandEagle

Lifer
Aug 4, 2007
16,813
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Originally posted by: CalvinHobbes


There is a store near me that is not one of the closing stores. I'll be buying stuff this week.

I went to one of the CCs by my place that is closing down. It's a newer store (open less than a year)... rarely ever busy....

they had signs all over with everything up to 20% off. reality is, that most of the good stuff was only 5% off.... i'm sure the little stuff like batteries were 20%.


i guess its time to dump my 1000 shares of CC today :(
 

techs

Lifer
Sep 26, 2000
28,561
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If internet companies have to start paying tax, it would help what's left of CC.
 

jackschmittusa

Diamond Member
Apr 16, 2003
5,972
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CC has been poorly managed for quite a while now. They were already paying big time for all of their mistakes. The economic crunch is probably the final nail in the coffin.
 

Thump553

Lifer
Jun 2, 2000
12,651
2,395
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They announced a boatload (155, I think) of store closings last week-not exactly a good sign for a retailer at the start of the holiday shopping season.

I guess they will never complete the idiotic proposed merger with Blockbuster. That would have made things simplier-one bankrutpcy instead of two.

I agree with Skoorb-use those gift cards TODAY if at all possible. You are now an unsecured creditor (with a minor priority) in the bankruptcy.
 

Hayabusa Rider

Admin Emeritus & Elite Member
Jan 26, 2000
50,879
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Heh, my company is next. Management by Idiots has been their method, and I'm pretty sure we're going to tank soon.
 

Zedtom

Platinum Member
Nov 23, 2001
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Originally posted by: Thump553
I guess they will never complete the idiotic proposed merger with Blockbuster. That would have made things simplier-one bankrutpcy instead of two.

CC is the victim of their own mismanagement. Blockbuster is next to go, probably by the end of next year.

 

Capt Caveman

Lifer
Jan 30, 2005
34,547
651
126
Originally posted by: SP33Demon
I can't remember the last time I've been in a CC. Horrible prices.

I have always found CC to have the best prices for newly released DVDs, CDs and pc games.

And they always had great Black Friday deals.

Too bad, competition is always good.
 
Oct 30, 2004
11,442
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Think they'll ask for a U.S. government bailout?

This really isn't good for electronics buyers since it means Best Buy won't have any competition in most places. I sure do hope that Frys expands further.
 

ElFenix

Elite Member
Super Moderator
Mar 20, 2000
102,414
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Originally posted by: Thump553
They announced a boatload (155, I think) of store closings last week-not exactly a good sign for a retailer at the start of the holiday shopping season.

I guess they will never complete the idiotic proposed merger with Blockbuster. That would have made things simplier-one bankrutpcy instead of two.

I agree with Skoorb-use those gift cards TODAY if at all possible. You are now an unsecured creditor (with a minor priority) in the bankruptcy.

this will help them close those stores because they'll be able to get out of the leases. assuming closing those stores and getting rid of the leases leaves the rest of the company profitable, this is a good thing for CC.
 

Lemon law

Lifer
Nov 6, 2005
20,984
3
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Originally posted by: ElFenix
Originally posted by: Thump553
They announced a boatload (155, I think) of store closings last week-not exactly a good sign for a retailer at the start of the holiday shopping season.

I guess they will never complete the idiotic proposed merger with Blockbuster. That would have made things simplier-one bankrutpcy instead of two.

I agree with Skoorb-use those gift cards TODAY if at all possible. You are now an unsecured creditor (with a minor priority) in the bankruptcy.

this will help them close those stores because they'll be able to get out of the leases. assuming closing those stores and getting rid of the leases leaves the rest of the company profitable, this is a good thing for CC.
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Circuit city has been going down for a long time. In the highly competitive world of electronic retailing, they have totally misused their superior mass buying at the wholesale level in a cavalier way. Instead of passing those saving on to their customer in the form of lower prices, they first tried to use it to pass higher sales commissions on to their sales forces. When that failed, they fired the high price salesmen but tried to stay afloat by using lower sales but a greater profit margin and that did not work in areas on high competition, and until circuit city learns they must compete on price,price, and price they may never learn the lesson 155 stores in their chain just will never get a chance to learn.

So more vacant mall retail space, what is new, the answer is always to build a new and trendier mall further out in the burbs. Get out before the tax abatement agreements expire, bankruptcy is just another real estate tax collection barrier.
 

dmcowen674

No Lifer
Oct 13, 1999
54,894
47
91
www.alienbabeltech.com
Originally posted by: Lemon law

So more vacant mall retail space, what is new, the answer is always to build a new and trendier mall further out in the burbs.

Get out before the tax abatement agreements expire, bankruptcy is just another real estate tax collection barrier.

Hey that's America's new manufacturing, Ghost Malls and Ghost Subdivisions
 

Thump553

Lifer
Jun 2, 2000
12,651
2,395
126
Lemon Law: You have to step back a little further in time to see the true seeds of Circuit City's downfall. In the 90's they were a powerhouse and either the major electronics retailer in the country or close to it. Then they started their ill fated divx rental DVDs project and lost oodles of money ($114,000,000 according to wikipedia) and goodwill (environmentalists hated the idea of throw-away rental DVDs).

 

StageLeft

No Lifer
Sep 29, 2000
70,150
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Originally posted by: Thump553
Lemon Law: You have to step back a little further in time to see the true seeds of Circuit City's downfall. In the 90's they were a powerhouse and either the major electronics retailer in the country or close to it. Then they started their ill fated divx rental DVDs project and lost oodles of money ($114,000,000 according to wikipedia) and goodwill (environmentalists hated the idea of throw-away rental DVDs).
I remember that (reading about it; I never actually saw it in person, but I've read of it a couple of times). it's kind of sad to read about, actually.

 

NoStateofMind

Diamond Member
Oct 14, 2005
9,711
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Originally posted by: WhipperSnapper
Think they'll ask for a U.S. government bailout?

This really isn't good for electronics buyers since it means Best Buy won't have any competition in most places. I sure do hope that Frys expands further.

I agree, frys should buy CC :D

Oh how happy I would be!
 

Lemon law

Lifer
Nov 6, 2005
20,984
3
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Originally posted by: Thump553
Lemon Law: You have to step back a little further in time to see the true seeds of Circuit City's downfall. In the 90's they were a powerhouse and either the major electronics retailer in the country or close to it. Then they started their ill fated divx rental DVDs project and lost oodles of money ($114,000,000 according to wikipedia) and goodwill (environmentalists hated the idea of throw-away rental DVDs).
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Thump553, if you are even semi correct in your assertion, I will be the first to acknowledge what you say as another casual factor.
 

Mani

Diamond Member
Aug 9, 2001
4,808
1
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People are speculating that after the holidays they'll go ahead and liquidate chapter 7 style, so use your gift cards if you've got em.