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.
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Reader Comments (Page 10 of 10)
1-11-2009 @ 1:50PM
Maya said...
ok..i just dont get it..from what i have read on here,the negtive comments are coming from people who apperently dont understand the retail buisness,no matter where you go,there are gonna be places that dot have things in stock..because its a popular item!!!And for the other people on here that keep whining that everytime time they go to circuit they get bad service..then why in gods name do u still go in there???????there are plenty of other places that would rather help your complaining,negative ass attitude!!! it just makes me sick that with the economy the way it is,that people on here,(im sure many of you have jobs) are hoping that thousands of people will lose theres!!! shame on you
1-11-2009 @ 6:56PM
Karen said...
The car dealer got there bail out. Losing CC could mean 45,000 people are out of a job. We need to create jobs not lose them.
1-11-2009 @ 10:07PM
A CC Vendor said...
If CC goes under it's not just the employee's that will be looking for another job, I work for a vendor that does business with them. If CC dies so does my job and I'm sure a bunch of others as well! Hopefully someone in government is talking to the potential CC buyers and giving them a good interest rate on a loan to buy CC... we can only hope.
1-13-2009 @ 1:16AM
employee said...
you people make me sick, I work for them and part of my check helps my single mom keep her home while I pay for school. I hope those of you with the hopes of people losing their jobs loose yours, oh wait, is that why you are angry? You lost your job, or is your home about to foreclose? Good day to you sick individuals!
1-12-2009 @ 4:38PM
CC Warranty Advisor said...
It's simply amazing to read all of these comments. Most everything I have read talks about "poor customer service" or "warranty stuff." I'm in technical support for Circuit's warranty so let me explain how this works. Circuit City is PARTNERED with an extended warranty company to sell warranties. They outsource, and believe me if you've talked to a computer manufacturer you know what this means. Be fortunate you talk to people in the USA, not India. First off, the return policy on items is 14 days. IT's like that at Best Buy, at Wal-Mart, HH Gregg, Radio Shack, Staples, etc. After 14 days, the item is fully yours. Now, within 1 year, sometimes more depending on the item, you have a manufacturer's warranty that MUST be honored. When you purchase an extended warranty it is just that, an EXTENDED warranty. Face it people, if it breaks due to normal use within a year, the manufacturer did not do something correctly and they need to fix it. Now I know some skeptics will say that's poor customer service, but do you really want to chance it? Oh and as far as credentials are concerned, I am A+, MCDST, Linux+, Server+ trained, and have 10 hours left on an MIS degree. I know how electronics work. Your warranty is very similar to an insurance policy on your car. If the car breaks within the first 10000 miles, they'll fix it. You can extend that to 100,000 miles, and, as long as you don't intentionally damage something, they'll fix it. We are the same way. You're not going to get an expert every single time you talk to someone, some people know more than others. Most of our service calls are a result of lack of understanding how a computer works. Think about this, a power supply for a laptop will last 8 full years in normal use. Now, normal use means that the laptop is off when you don't need it, plugged into power with battery removed, not running hundreds of applications, not using chat software, not listening to music, etc etc etc. I know people that never turn their laptop off. Do you leave your car running when you're not planning on driving? Go park your car in the garage, start it, then leave it on for a week. What do you expect to happen? As far as "poor customer service," have you ever by chance listened to yourself as a customer? Chances are, you had an attitude when you came in and your tolerance was lower than normal. You're quick to get irate because you have a broken product and you don't know how to fix it. We understand, and we're here to help you. However, we are not going to break our policy to help you. There are terms and conditions availble at any time for your viewing pleasure. You can't expect to hold us responsible for your failure to read and/or care about what that says. Would you buy insurance without reading small print? Of course you wouldn't. It is your responsibility to educate yourself about how terms and conditions work, not ours. What most people don't even read in those terms and conditions is that if you dispute the provisions of said agreement you AUTOMATICALLY agree to MANDATORY arbitration when you purchase the warranty. Meaning, it won't go to court, you won't get extra money, your BBB won't be able to do much because it's all crystal clear and in print. Ignorance of policy is no excuse. As far as "exceptional customer service", is that something you receive everywhere you go? Does your waitress at your favorite restaurant fill your coffee at some imaginary line every time because that's how you want it? If she does, do you tip her for it? I'll admit, sometimes I have to be unfriendly, but that is a reflection of you directly. When you speak with me, use tact and logic and I will do the same. Use foul language and yell and you will not get any closer to what you want. Too many consumers have lofty expectations of what they are entitled to. You're entitled to what you purchased, nothing more, nothing less. If you drop your laptop and didn't pay 600 dollars for the damage plan, you made that choice, not us. We don't go by what you were told, but what you bought. I hope I've shed some light for some of you. Best wishes to anyone affiliated with Circuit.
1-13-2009 @ 1:58AM
mary said...
I have always had an excellent experience at
Circuit City. I walked in one store at Christmas
time with a shopping list and an associate took my list and came back about 15 minutes later with
everything on my list in a basket. I had about
8 things on my list and she found every one of
them. They have been most helpful all of the
years I have shopped there. The firedogs are
very knowledgeable and helpful. I will miss
them if they leave , I have had horrible
experiences with Best Buy and wil shop at
other places then there.
1-13-2009 @ 2:18PM
Ccity Supervisor said...
Everyone has their irate comments about how they were treated unfairly. That's fine. Everyone has had some type of question about how a warranty works. That's fine as well. What's not fine is that angry folks love to hate a company that is undoubtedly in its final month and feel like they deserve it. Does any company like Circuit City deserve to go out of business? I've been the Computer\Tech Supervisor since June '08 at a certain NY superstore and I was quite happy with the enhanced pay I received from working a bit harder to earn my position in management. Now the company and position I'm just starting to understand is a sinking ship and people claim we all deserve it, all because their open box TV was defective. Or the associate they spoke with one day "lied" to them and they feel they've been wronged. Roughly 45000 employees are soon to be on the street, and I'm none to thrilled. So please, continue to display your anger and resentment. Don't worry about those directly affected, and enjoy your higher prices from our competitors who may one day be in the same ugly position as us. Get real everyone, there is no good to come from this. That's my two cents...
1-13-2009 @ 6:07PM
clarissa said...
I LOVE CIRCUIT CITY I WORK THERE
1-14-2009 @ 1:26PM
RJ said...
I have been a faithful CC shopper for over 10 years and will be sorry if they close. I've never had bad service in any of their stores in which I've shopped. Also, their response to any refund or warranty issues has, without fail, been 100% thorough and professional.
1-15-2009 @ 1:11AM
Brian said...
Speaking from the standpoint of a Circuit City employee, I think that all the people on here that want and pray for Circuit City to go out of business are morons. Take a minute, or 30 since you have no brains, and think about what you are saying. You want a Fortune 500 company, the 2nd largest electronics retailer in the country to cease to exist. If Circuit City is to go out of business, it would be another shot in the already slumping body of the American economy. Think of all the employees that would flood the job market. It would be roughly about another 50,000 people that would be looking for jobs in a time where it is almost impossible to find one anyways. Not to mention the tightening of wallets across the country of people that are now unemployed, which means less money being fueled into the economy. The closure of Circuit City would only be another sign of the trying times that this country is going through. Rooting for Circuit City to close is comparable to rooting for the country and the economy to fail. And for what? All because you got some bad service..........hmmm......I would hate to tell you this........and it's not a secret.....but those things happen, that's life, deal with it. So you got bad service at a Circuit City, be an adult, deal with it and take your business elsewhere. There is really no reason to come on here and cry about it and proudly state how you can't wait for the place to go out of business and say how the company is getting what it deserves. You are wishing unemployment on thousands of people, you are saying that you WANT people to lose their jobs and their sources of incomes. To all those people out there, take a step back and analyze your life for a second. Think about what it would be like if you were to lose your jobs, your source of income. Think about some of the sacrifices that you would need to make. Think about the effect that unemployment would have on your lives because you too may face that problem someday, and that is the same problem that is staring all Circuit City employees in the face as we speak. This country is facing dire times. Pleading for Circuit City to go out of business just because you had a bad experience, like I said before, is like rooting for this country to fall into even deeper problems. Instead of acting like children and whining and crying about it, just take the time to reconsider your stance and view it from the perspective of an adult and try and understand, if you have the mental capacity, the short and long term effects that the liquidation of a company has on the economy and everyday life in this country. If you still feel the same way, then I feel sorry about the problems you too may face by this weakening economy and your own shortsightedness.
1-15-2009 @ 8:39AM
John said...
If CC does close their doors, I will miss the store that is so close to home. I don't have any bad experiences (really only good) with CC and wish their workers good luck in the coming days/weeks/months.
As another poster noted, lack of competition will most certainly mean less savings for the consumer.
Best of luck CC!
1-15-2009 @ 4:47PM
miguel said...
as a circuitcity employee of almost 5 years its hard to seat hear reading peoples comments. I started at cc in champaign IL when I was 19 since then I have graduated from U of I and have a good paying job but, i still enjoy working a few hours at cc. Many of you dont realize that many of the people at these stores are young college student many who are alot more intellegent than many of the people that shop at our stores. I will agree every stores has a bad apple or two but look around at your own place of business and you will see that you have the same issues. I hate knowing that a customer is getting bad customer service like many we try to help our new staff learn as quick as possible to keep our guest happy but its hard to motivate everyone to care. I can tell you that many of us at our store specially the tv department love electronics and that is why we work there. We enjoy helping you understand what they are looking to buy. This also consists of telling you that what you heard from a bb employee is wrong. In the last couple of years I tend to visit bb just to gage their customer service, after 3 years of avoiding it. As a freshman I purchased a laptop tv and sterio system as I spoke with the salesman I agreed that buying a warranty would be a good idea since i didnt see myself being able to afford another 3000 dollar purchase for many years, well as my laptops battery craped out and my speakers went bad so did my opinion of the company so many of you like.
Going back to my visits at bb, i have experianced the best they have and the worst. I have left laughing because of how much bull they made up about a product rather than saying sorry but i dont know. The bad thing is that the customer that doesnt know any better belives anything they tell him. in other occasions they been great so people should just realize that it all depends on who you talk too.
forgetting the whole cc bb bull think about people that work at cc. CC has allowed many of us to pay for our way thru college they allowed me to work the schedule that best fit my need, they have provided tuition assistance and help in other ways. I know many other people have enjoyed being around cc, so now that cc might be seeing its end i can only be thankfull for what they did for me.
1-16-2009 @ 11:20AM
JMH said...
Internet-based vendors/deals will continue to kill the brick and mortar vendors and Best Buy may be next in line for the chopping block.
I've had a couple of very bad experiences at my local CC. I continue to go back hoping to find a good deal only to walk away laughing at their ridiculously high prices and false "deals". For example, I was recently looking at a Xbox360 network adapter in my local CC (it had been marked at $99.99 forever). I saw it on "clearance" for... can anyone guess? ...Yep, that's right $99.99! I had to step back and look twice to make sure. Like I said, at least I can go there for a good laugh.
I'm not gonna lose any sleep for the absence of CC, but I feel awful to think that there will be thousands more left jobless because of this liquidation. I wish those former CC employees who have been kicked to the street the best of luck in finding work soon.
In spite of those who have had great luck using your services, CC... you still should have done a better job running your business!
1-22-2009 @ 5:59PM
jeff said...
The sooner the better.
1-29-2009 @ 3:32PM
deb said...
i tried to get a part under warranty after the store closed and cannot get info. the co. that has the warranty,AON says they have no records yet from circuit city advantage plan. i don't buy it. they have had these policies all along.