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 5 of 10)
1-10-2009 @ 12:49PM
Ram12 said...
Customer service is a thing of the past as far as employee orientations at these major corporations. the major corporations have forgotten what can keep them competitive in the market and that how you chose to treat your customers and creates an experience for them to make them want to come back. I puchased a home theatre system a few years back from CC, the service I received when purchasing was impeccible as a potential buyer, when I had to return to the store to report technical problems with the unit it was then that I was treated like I was foreign, and all CC represenatives all the way up to the Regional Sales Manager in that area could only inform me of what it was they couldnt do for me, basically since I was no longer a potential customer but with an issue instead that they had no desire to deal with. I now shop and spend a reasonable amount of my income at Best Buy cause of my history and the treatment I received from CC, so therefore I have no sympathy for CC or it's probably overpaid executives and staff.
1-10-2009 @ 12:50PM
jim said...
Never had any problems at C C . I`ve purchased quite a few products there over the years. I always research the products on my own and always wait for sale prices. I had one bad experience at Best Buy so they lost my business.
1-10-2009 @ 1:30PM
Brett said...
They both suck. I bought an amplifier from BB and it came with a 1 yr warrantee. i bought the 4 year warrantee for it. 1 yr and 1 month later the amp died. BB sent it away and told me it would be 6 weeks to get fixed.It couldnt so they give me a new one 2 weeks later. then they asked if i wanted to buy another warrantee. I said No...I bought a 4 yr warrantee. that says to me no matter how many times it breaks. i have an amp for 4 yrs.....Not so..if it breaks once after the 1 yr factory. and they replace it. then its new and i need a new warrantee. I say they screwed me and i no longer shop there!
1-10-2009 @ 1:15PM
David said...
I just gave my computer to firedog (with whom I have a full 4 year warranty) to have them fix it and they had to ship it out. If Circuit City closes, what will happen to my computer?
1-10-2009 @ 1:16PM
Stephanie said...
I got an application for employment from Circuit City. It was a long, involved thing including an agreement to arbitration if there was any problem in the hiring process.....Hello? I don't even work for you people and you're thinking I'm going to sue you? It kind of soured me on the store, and I stopped shopping there as well.
1-10-2009 @ 1:25PM
deeray said...
Brandsmart USA has the best deals around.Circuit City is un-American when they laid off all of those people.Like the saying what comes around goes around!
1-10-2009 @ 1:38PM
Fred said...
I stopped buying at Circuit City 7 years ago after being confronted with their horrible service staff. I am almost happy to see them get what they earned by abusing the consumers but it is sad another company will drop in this Bush economic blunder.
1-10-2009 @ 1:38PM
Tim said...
I bought a new camera from Circuit City, and it didn't work right out of the box. I took it back to exchange it and they didn't have another one. I ask for a refund and was informed at that time there would be a 20 percent restocking fee. I took the hit and have never set foot in there stores again. It's good to see other shoppers have done the same. Good bye Circuit City hopefully forever.
1-10-2009 @ 1:41PM
Matt said...
It's called free market economics. Let 'em go down. And don't worry about Best Buy being the only one left...I'll still be buying all of my electronics at WalMart!!
1-10-2009 @ 1:42PM
James said...
I have bought from CC many times and was satisified with their products and especially the service personal. I returned a GPS that was defective and immediatly given another one that was checked before I left the store. I'm sorry they may vanish . I like CC and have purchased many products over the years and would do it again .Always satisified with their stores .
1-10-2009 @ 1:44PM
dave said...
if they are to die, they better go ahead and do it, and decrease the surplus population
1-10-2009 @ 1:50PM
Trapped in Alabama said...
Why am I not surprised. Given the way they fired any employee in '02 who knew what they were doing...
And given the way they lie to the public...
And given the way they rip off consumers with their fraud laden "110% price gaurentee"...
Yep, when it came time to buy that 32 inch LCD Flat Screen Samsung TV this holiday season, I bought it at the Costco across the street from the local Circuit City. In was $98.00 dollars cheaper.
Yo CC= it is very expensive to screw over your employees and lie to the public. Guess you are going to find out exactly how exspensive.
1-10-2009 @ 2:03PM
J said...
All the circuit city in Rockford, IL cares about is scamming people with their warranty plans. I won't buy there because of their pressure tactics. I go there get info and then buy at Best Buy.
1-10-2009 @ 3:27PM
chuck said...
c/c has given me some major headaches in the past,with the no problem sir just bring it back attitude,an when you get there its a different story.when you bite the hand that feeds you 2 long,it eventually bites back,oh an the economy isnt helping either!!!!!!!
1-10-2009 @ 5:03PM
rick said...
ever since ciruit city started funding the far right religous fundies, we haven`t purchased ANYTHING from them. it is unfortunate that there will be alot of people out of work. best buy(they do things that annoy me, but are decent overall) is a very inclusive company that values the diversity of their employees and are a stronger company for that.
1-10-2009 @ 5:56PM
Worker said...
It's sad to see people actually cheer at the downfall of a company, when the lack the intelligence to consider the effects upon not only the people whom work for them, but the economy. So enjoy laughing and cheering as good people lose their jobs and homes. Selfish ignorant fools.... As we wish the same upon you.
1-18-2009 @ 4:12PM
Heather said...
David, your computer will be repaired if possible and sent back to you. All pending repair tickets will be completed. Any warranties purchased will continue to be honored as they are insured through Assurion, a third party company. In my Circuit City store here in Charleston, SC, we are all committed to good customer service. I frequently describe my job as a CSA as "Taking unhappy customers and making them happy." It's my job to see you walk out that door with a smile, carrying just what you wanted in a bag, hopefully at an agreeable price. We do enforce store policy, but we try to work with our customers. Our staff is very knowledgable, and we rarely have angry customers. Most of our customers have been telling us how sorry they will be if we go under. I've only been employed here a few months, but I like the customers and my co-workers. I can find another job, in time, but it makes me very sad to think this once great company may go out of business. I don't approve of the firings, but that was a mistake of the past made by our old CEO--not our new one, who seems to genuinely care about his customers and employees. I think he could have taken this company to a higher place.
1-10-2009 @ 9:23PM
susan said...
The spelling errors in these blogs are atrocious!!!
1-10-2009 @ 9:26PM
GEE said...
WHO CARES,THE CEO GOT HIS MILLIONS.SHOP BEST BUY.
1-10-2009 @ 9:45PM
sig said...
I bought a display flat screen monitor at CC. I was seriously in the market for a couple of other things too, but the sales guy who showed me the monitor didn't bother to ask me if i was looking for anything else, just rushed me through the check out process, so I took my business elsewhere for the other items.