XHonusWagnerX
Moderator
Posts: 12509
Registered: 7-14-2005
Location: pawtucket
Member Is Offline
Mood: hadDCore
|
|
Circuit City closing... liquation sale....
NEW YORK (CNNMoney.com) -- Bankrupt electronics retailer Circuit City Inc. said Friday it has asked for court approval to close its remaining 567 U.S.
stores and sell all its merchandise.
The company said it has 34,000 employees.
"We are extremely disappointed by this outcome," James Marcum, acting CEO for Circuit City, said in a statement. "We were unable to reach an agreement
with our creditors and lenders to structure a going-concern transaction in the limited timeframe available, and so this is the only possible path for
our company."
In a filing with the U.S. Bankruptcy Court for the Eastern District of Virginia, Circuit City - the No. 2 electronics retailer after Best Buy (BBY,
Fortune 500) - said it had reached an agreement with four companies to start the liquidation process.
The company said the sale would begin Saturday and run until March 31, pending court approval.
Circuit City said employees will receive 60 days notice of the termination. Those who remain with the company to assist with the liquidation, will
receive pay and benefits.
Circuit City also operates about 765 retail stores and dealer outlets in Canada. The company said its Canadian operations, which employ 3,000 workers,
will continue to operate.
"This is very significant. It shows you how bad things are for the the retail industry," said George Whalin, president and CEO of Retail Management
Consultants.
Whalin said management mistakes over the past few years combined with the recession brought down Circuit City.
"This company made massive mistakes," he said, citing a decision to get rid of sales people and other mismanagement.
What's more, given the credit market freeze, Whalin added that no manufacturer wants to sell to any retailer who doesn't have money to pay for the
merchandise.
At the same time, Whalin said there's still a very slim chance that one or more firms that have expressed an interest in buying Circuit City could
still buy it out of bankruptcy over the next few days.
"I wouldn't say it's completely over yet for Circuit City, but it's almost over," Whalin said.
Love Goel, CEO of Growth Ventures Group, an investment banking firm focused on retailers, agreed with Whalin.
"Circuit City isn't a viable business in its old incarnation when half of electronics sales have moved online," Goel said. "CompUSA and Tweeter also
didn't make it for the same reason."
However, Goel speculated that Circuit City could still find a lifeline if Golden Gate Capital, one of the reported lead bidders for the merchant,
bought the company and restructured it primarily as an online business with very few physical stores.
"This would eliminate overhead costs, vendor conflicts and other issues," he said. "Circuit City has an almost $1 billion online business. So there is
a future for it in that regard."
| Quote: | Originally posted by REV.PAULIE
HONUS-as much as i can't stand a great deal of what you really like (for my own reasons that i would never hold,nor impose,against you),YOU FUCKING
RULE!
YOU,HONUS,IS WHAT MAKES THE "EDGE" COOL.
YOUR FRIEND,
PAULIE |
check out my post contributions at www.VinylNoize.com
|
|
|
BDx13
|
|
just saw this as well.
nice.
...for me
...not the staff, obviously.
i'm calling the local stores today to find out when the sales start.
If I fail math, there goes my chance at a good job and a happy life full of hard work.
|
|
|
moron
Posting Freak
Posts: 2393
Registered: 5-28-2003
Location: CT
Member Is Offline
|
|
Im looking forward to the sale. Mrs. Moron and I already bought a TV there last year though. No need for another one. Maybe games and music will be
marked down nicely.
|
|
|
clevohardcore
* Kick\'n ass on the wild side *
Posts: 12937
Registered: 9-19-2004
Member Is Offline
Mood: Sick Of It All, Youth Of Today
|
|
this is why my compter does not have a warranty. I had to take it to BESTBUY. The CC near me and where I bought the computer closed before christmas.
Also the sales were not that great. I was looking for a TV but they jacked the prices about 20% estimate and discounted them 20% then 30%. What was
left they did lower to 50%. Which in actually was 30% of normal prices. Salles people were upfront about it. So they had to bring in temporary sales
people.
Each aspect of the soul has it's own part to play, but the ideal is harmonious agreement with reason and control.
|
|
|
BDx13
|
|
same thing at that tweeter liquidation sale i went to a few months back.
even their 'gotta go' prices were about what you could find from unauthorized resellers online.
that's part of the reason i went floor model and open box.
those things were cheap and they work fine.
If I fail math, there goes my chance at a good job and a happy life full of hard work.
|
|
|
JawnDiablo
Posting Freak
Posts: 12139
Registered: 4-21-2005
Location: 1902666
Member Is Offline
|
|
Guys like us, on this here board will not be fooled by their trickery.
Having said that, I plan to go look at computer crap and other stuff once the sales are announced....
|
|
|
DaveMoral
Posting Freak
Posts: 4334
Registered: 1-24-2006
Location: Ardmore PA
Member Is Offline
|
|
I want an external hard drive.
|
|
|
Furly
Posting Freak
Posts: 1324
Registered: 1-7-2008
Location: right next door to hell
Member Is Offline
Mood: Not your band.
|
|
I really don't need anything, but I'm a junkie for Clearance.
|
|
|
BDx13
|
|
stopped by on saturday.
nothing really going on yet.
20% off cds.
If I fail math, there goes my chance at a good job and a happy life full of hard work.
|
|
|
![[*]](images/thorp/default_icon.gif){kind=icon}
