This looks like the end for Circuit City

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aphex

aphex

Moderator<br>All Things Apple
Moderator
Jul 19, 2001
38,572
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91
2 Year Chart

Looks like that Blockbuster offer of $6-8/share 8-10 months ago wasn't such a bad idea for CC after all.

UPDATE: http://gizmodo.com/5074174/rum...155-stores-this-monday

Today we can bring you early word that Circuit City is apparently on the verge of closing 155 stores and withdrawing from the consumer electronics business for good. Sister site the Consumerist broke the unverified news thanks to an insider tip, which has since been corroborated by a forum post over at Google Finance. Consumerist also reports that employees in certain departments, like car installation, will be unemployed within 48 hours (warranties will still be honored). Most closings are expected to be wrapped up by December 31, 2008. It's a sad day for everyone at Circuit City, but also an inevitable one, given the coverage we've seen over the past year. The Sony truck turnaround story from earlier this week was especially damning. [The Consumerist]
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rudeguy

rudeguy

Lifer
Dec 27, 2001
47,351
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Originally posted by: Genx87
Originally posted by: Quintox
WOW. Good time to buy?
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afaik Circuit City has had financial troubles for a couple years. Probably best to walk away.
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More than a couple.

First they got out of appliances, then they fired they 2500 top salesmen because they didn't want to have to pay them.

The company has been going the tubes for years. I know more than a few competitors who have made it their mission to put CC out of business.
 
IronWing

IronWing

No Lifer
Jul 20, 2001
73,143
34,446
136
Dang it, I just bought stuff from them. Hope it doesn't break. CC was talking about closing a bunch of stores and liquidating inventory to raise cash to help pay for long term leases on stores they have already closed. The term "death spiral" does seem appropriate here.
 
Q

Q

Lifer
Jul 21, 2005
12,046
4
81
If Blockbuster offered then $6-8 a share at one time, why doesn't BBV just go any buy as many shares as possible now that its so cheap?
 
FeuerFrei

FeuerFrei

Diamond Member
Mar 30, 2005
9,144
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market cap is only $42 million now

what's that ... $210,000 per store if they have 200 stores (no idea how many stores they have)
 
IronWing

IronWing

No Lifer
Jul 20, 2001
73,143
34,446
136
Originally posted by: ultimatebob
Originally posted by: geno
That's what they get for sucking.
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They suck less than Best Buy... but that doesn't say much I guess.
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I have to agree with this. Once CC got rid of the commissioned sales folks, it became tolerable to shop there. Also, their prices have been lower than BB's lately.
 
R

ric1287

Diamond Member
Nov 29, 2005
4,845
0
0
Originally posted by: ironwing
Dang it, I just bought stuff from them. Hope it doesn't break. CC was talking about closing a bunch of stores and liquidating inventory to raise cash to help pay for long term leases on stores they have already closed. The term "death spiral" does seem appropriate here.
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i sure do hope its a "liquidation" like CrapUSA had. Shit was more expensive than it was before closing.
 
A

akshatp

Diamond Member
Oct 15, 1999
8,349
0
76
So what happens to the poor saps who bought the "CC extended warranty plans" if they go out of business?

Are they SOL? This is one of the reasons I would never buy an extended service plan.
 
sactoking

sactoking

Diamond Member
Sep 24, 2007
7,649
2,925
136
Originally posted by: akshatp
So what happens to the poor saps who bought the "CC extended warranty plans" if they go out of business?

Are they SOL? This is one of the reasons I would never buy an extended service plan.
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That warranty is serviced by a third-party insurer. CC is just the sales agent. So long as the insurer is solvent, the warranty is valid.
 
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