Circuit City Stores Inc. (NYSE:CCTYQ) may not be long for this world.The troubled electronics retailer said today that it has until the end of next week to reach a deal "with interested parties" or else it would be forced to liquidate. This is hardly surprising.
Circuit City filed for Chapter 11 bankruptcy protection in November after being squeezed by both the credit crunch and rivals including Best Buy Inc. (NYSE: BBY). Moreover, consumer confidence is at an all-time low making it difficult for any seller of discretionary purchases such as electronic gadgets and gizmos.
It will be a miracle if a white knight comes to Circuit City's rescue. For one thing, Best Buy, the No. 1 retailer of electronics, is struggling too. The company today narrowed its 2009 forecast because of weak sales in December Many other retailers are facing hard times and more bankruptcies are expected.
But Circuit City has been in trouble even before the economic slowdown. In March 2007, the second-largest electronics retailer gained headlines after it fired 3,400 "experienced" workers and replaced them with lower-paid less-experienced staff. It was a public relations disaster.
Not only did it make the Virginia retailer to look like a heartless employer, but it made it seem that it did not give a hoot about its customers. People like me have gadget-phobia. Anything computerized or electronic freaks us out. When are looking to buy a new gizmo, we need lots and lots of hand holding from sales people. My fellow gadget-phobes and myself are not going to take a chance of getting poor service from Circuit City.
Like many communities, we have Circuit City and Best Buy next door to one another. Guess which parking lot is usually empty.











Reader Comments (Page 1 of 10)
1-09-2009 @ 3:20PM
beachpaul said...
When's the liquidation sale? I need a few things.
1-09-2009 @ 4:27PM
Richard said...
I have never purchased anything from Circuit City. This is in part to the fact that Circuit City never had the service I wanted. The company cannot pull off any turnarounds in this market and will be forced to close their doors permanently and liquidate their products. Best Buy has better trained associates to assist the customers.
1-09-2009 @ 5:00PM
Nick Miller said...
interesting, you know I shopped at CC several times but never bought anything there, I would use them for their sales people then go next door and buy the same product from Best Buy at a lower price... I guess Im not surprised they are going under!
http://www.regular87.com
1-09-2009 @ 7:24PM
Jose said...
Who cares?
1-09-2009 @ 7:42PM
Jack said...
Maybe some TVs will finally be marked down at Circuit City.
1-09-2009 @ 9:14PM
H. said...
Circuit City has finally realized its destiny. They were a top heavy egotistical bunch of assholes that protected the hiarchy of its company. But now the chickens have come home to roost. They are getting just what they deserve. Hopefully they will dissolve and close their doors.
1-10-2009 @ 6:42AM
fmerg said...
we dont have a circut city close to us
but we do have a best buy
best buy should also go under their customer service is none existant
their return police sucks (15% restocking fee on defective products)
their service plans have a turn around time of 6 months
1-10-2009 @ 7:22AM
Anna said...
Could not happen to a better company. I have boycotted the store since 2002, when they gave me a hassle about fixing a 6 month old computer with motherboard issues. I also kindly informed others of the bad service.
1-10-2009 @ 7:18AM
PK said...
Had a gift card, was holding it and holding it...worried that they would go down, and I would be stuck with it...Every person I talked to in the TV dept. had a diff. opinion,bought ONE tv had to take it back, finally got another tv, it took total time 1 1/2 mos. to get this all solved. I'm glad I used it up but.....
1-10-2009 @ 7:32AM
Scott said...
Go ahead everybody, let Circuit City close then Best Buy can name all of its prices!!! Its called no-compitition, people! Wake up
1-10-2009 @ 7:33AM
John A said...
The only thing that's bad about this is, alot of times, C.C. has better prices in thier flyers (especially dvd's) and if you bring they're Sunday flyer to Best Buy, they'll match the price! Otherwise, I don't see any other loss of them going down. It's unfortunate for the employees! This recession is killing ALOTof people!!!
1-10-2009 @ 7:45AM
Bobby said...
From the comments above noone seems to care if CC bites the dust. Keep in mind that when they do, there's very few total electronic stores left to keep Best Buy in line with pricing. This may seem like a good thing but you might end up paying more for those little gadgets in the future. Some of this is healthy, but we really don't want a non competative marketplace....
1-10-2009 @ 7:56AM
blueheron said...
Nick Miller -- where will you go now for your electronics expertise? Apparently, price is not everything.
1-10-2009 @ 8:14AM
janice said...
Circuit city is the much better store than the not a very Best Buy store. I had a computer prob. w/the pc purchased from Best Buy, among other things, ie; Nikon Coop pix camera...the staff was rude, obnoxios and outright stupid !!!
So why is the better store going??
1-10-2009 @ 8:16AM
Mark said...
Your comments are rife with grammatical errors.
1-10-2009 @ 8:29AM
wehome said...
I actually don't mind going to Circuit City as their staff has always been very helpful and knowledgable.
If I HAVE to go to Best Buy? I will research everything on line then order it so all I have to do is walk in and pick it up. I can't stand what they call assistance.
1-10-2009 @ 8:40AM
Ripcord said...
I've always found the employees at Circuit City to be more knowledgable than Best Buy. Went to the latter and the guy from the Geek Squad they had couldn't even get on the internet! The Firedog guy at Circuit City answered all my questions. I've had this experience at more than one store from each chain, too.
1-10-2009 @ 8:42AM
Marion said...
I had a bad experience with Circuit City and getting a Cell plan years ago...The sales made it seem as I got the best phones and had these wonderful rebates. However the 75. and 100.00 rebates both went to the same address and it was stated on the form, one rebate only for each number! To say the least they were at that time #1 in retail of that sort. Well I did go to management and get that straight, but never shopped there again.
I do not feel though however the store is going under due to those shoppers that go elsewhere, it is this Recession "that the government finally figured we are having" about a year later then it really started.
I also do believe it is these bigwigs with the large 6 and 7 figure salaries that need to take the cuts to let and help us little people survive and not be on the streets. Or maybe they will be kind enough to let us knock on their doors?
Well good luck all, Circuit City and all retail, but mainly to us middle and lower income families with children.
Peace
1-10-2009 @ 8:47AM
Larry said...
I feel Joy in my Heart to just think these Bastards will close their doors!!! A bunch of street scum, with out the dignity of street scum. They simply refuse to give refunds, or exchange what they'd prefer not to, regardless of what is even written on your sales contract. I have had nothong but trouble from them, with anything I or someone else I knew bought anything from them... They actually stole money from a friend of mine, refusing to take back a floor model TV that was defective, saying it was a discontinued modle and they were therefore not required to adhere to their own sales contract... It's just a shame their upper management and CEO isn't going to get some Jail Time!!!
1-10-2009 @ 8:47AM
Leon said...
I have found that Circuit City's prices are higher and they seem to be regularly understaffed, but they are very intelligent about the products they carry.
Best Buy has more people who know their technology, but only in the act of selling and "bait and switch" sales techniques (Oh, we ran out of the sale item, but we have this more expensive similar item.) Watch out for Best Buy!