Circuit City Stores, Inc. (NYSE: CC) may start liquidating some if its assets this week, the retailer indicated a few days ago. If Circuit City cannot find someone to help, its existing bankruptcy may turn into a complete obliteration of the entire company.It's sad for many reasons. First, the incredible mismanagement of the company in the last two years led it down a self-destructive path. Former CEO Phil Schoonover either was very incompetent or very complacent in not attacking the competition, even before the economy collapsed and consumers stopped spending.
Second, it's hard to say if the retailer knew it was headed for oblivion and was only trying to buy time when it filed for bankruptcy last November. It wouldn't be the first time.
Circuit City's situation is so dire that it indicated last Friday that it may promote itself "as a going concern, as separate business units or as individual assets -- including the sale of inventory." In other words, look for a fire sale soon. Unless it receives an equity injection, this company is dead. Dead dead. If January 16 comes and Circuit City does not have some money or a buyer, it'll start breaking itself up faster than the Titanic.
New Facebook share structure hints at IPO
Before the bell: Futures higher ahead of housing, jobless data
Nuclear power is on the comeback trail
Reader Comments (Page 1 of 1)
1-13-2009 @ 6:22PM
widollar said...
With Best Buy, Target, and Walmart, the world does not and will not miss Circuit City. Great company thirty years ago, but times change and they let Best Buy clean their clock.
1-13-2009 @ 9:09PM
Sirius said...
it took the Titanic a long time to sink!
1-13-2009 @ 9:11PM
Tony said...
the world will miss CC when Best Buy starts charging you whatever it wants.
1-14-2009 @ 5:59AM
al coholic said...
Actually Best Buy is not a discount store anymore. They count on the impulse or "I have to have it right now" buyers or the people who are too lazy to check their prices.
No real price conscious consumer frequents Best Buy anymore.
1-14-2009 @ 11:28AM
TX CHL Instructor said...
I won't miss CC. Since I'm too old to work there, I'm too old to shop there.
--
www.chl-tx.com Thanks to the Chicago Politician with the Blank Resume, my business is BOOMING!
1-15-2009 @ 2:55PM
miguel said...
Its hard to understand what effect cc closing will have on prices, bb will be in the position of not having to price match anyones prices. since the big ticket tvs are not kept in stock. BB will charge and do whatever they want with the you the customer.