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.