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is Circuit City Dead? (Closing 155 stores in 2008)

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is Circuit City Dead? (Closing 155 stores in 2008)

Old 11-10-08, 07:26 AM
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Forget gift cards, how about rebates! If you have a CC rebate you are in deep doo doo.
Old 11-10-08, 08:11 AM
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Circuit City files for bankruptcy protection
By VINNEE TONG and MICHAEL FELBERBAUM, AP Business Writers Vinnee Tong And Michael Felberbaum, Ap Business Writers
3 mins ago

NEW YORK – Circuit City Stores Inc., the nation's second-biggest electronics retailer, filed for bankruptcy protection on Monday but plans to stay open for business as the busy holiday shopping season approaches.

It filed under Chapter 11 of the bankruptcy code, which will allow it to hold off creditors and continue operations while it develops a reorganization plan.

The Richmond, Va.-based company has been struggling as nervous consumers spend less and credit has become tighter, and the retail industry overall is facing what's expected to be the weakest holiday season in decades.

Circuit City also said it would cut 700 more jobs, after announcing a week ago that it would close 20 percent of its stores and lay off thousands of workers.

"This isn't a surprise," JPMorgan analyst Christopher Horvers said, adding that the reorganization could help the company get out of leases for certain bad store locations.

Circuit City, which has had only one profitable quarter in the past year, has faced significant declines in traffic and heightened competition from rival Best Buy Co. and others. It said it decided to file for bankruptcy protection because it was facing pressure from vendors who threatened to withhold products during the holiday season.

"At the end of the day I think it's really about an inventory position," Horvers said. "If they can get inventory into the stores, I can think they'll remain competitive."

He added, "I think it's encouraging that they were able to secure financing." Circuit City said it had lined up $1.1 billion in loans to provide working capital while it is in bankruptcy protection. That replaces a $1.3 billion asset-backed loan it had been using.

The company said in its filing that it had $3.4 billion in assets and $2.32 billion in liabilities, as of Aug. 31.

Circuit City Stores Inc. announced a week ago it planned to close 155 of its more than 700 U.S. stores by Dec. 31. The stores are spread throughout 28 states, including multiple locations in areas like Phoenix and Atlanta. It is laying off about 17 percent of its domestic work force, which could affect up to 7,300 people.

The company also said last week that it will further cut back on new store openings and planned to work with landlords to renegotiate leases, lower rent or terminate agreements while it dealt with tightening credit from its vendors.

Circuit City posted a wider second-quarter loss in September with a 13 percent decline in sales at stores open at least a year. The company has been under new leadership since late September when Chief Executive Philip J. Schoonover agreed to step down. He was replaced by James A. Marcum, who is now vice chairman and acting president and chief executive.

Shares in Circuit City have traded under $1 for more than a month and the company received a warning about that last month from the New York Stock Exchange that.

___
Old 11-10-08, 09:08 AM
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Blame it on the economy, but the fact is that CC is just a shitty store, compared with it's major competitor(s). I don't know anyone that has shopped there in years.
Old 11-10-08, 09:22 AM
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Originally Posted by cdollaz
Blame it on the economy, but the fact is that CC is just a shitty store, compared with it's major competitor(s). I don't know anyone that has shopped there in years.
they have good video game clearances!
Old 11-10-08, 09:26 AM
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Originally Posted by cdollaz
Blame it on the economy, but the fact is that CC is just a shi**y store, compared with it's major competitor(s). I don't know anyone that has shopped there in years.
Why would anyone shop there? It's a freakin' joke.

They don't man the registers - ever. If you want to buy even one DVD, you have to go to customer service and wait behind people doing complicated returns. There's like 4 associates all looking cluelessly at the same terminal trying to figure out how to accomplish the return.....

The shelves are bare, no one has any knowledge of the products, the prices are horrendous.....yea, I'll go there and drop a few grand on a new TV or receiver.

This used to be a great store in the 90's. I bought a lot of audio equipment there, and hundreds of CDs.

Now, I say good riddance, their time has long passed.
Old 11-10-08, 09:33 AM
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Bankruptcy? Yikes. Better use my $10 GC while there's still time!
Old 11-10-08, 09:34 AM
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My only pang of regret is that there will be less competition, but its nice to see a completly FUBARed store get what it deserved.
Old 11-10-08, 10:10 AM
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I will say from the service I have received from the employees the last few times I was there they certainly act like its dead. They don't care, don't want to be bothered and have no knowledge of anything the store sells.

Last edited by darkside; 11-10-08 at 12:34 PM.
Old 11-10-08, 10:17 AM
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It's a shame -- many years ago I preferred Circuit City over Best Buy. Something about the layout always seemed more comfortable. Then, of course, everything went into the meat grinder.

Went into one of the closing stores this weekend to check out the 20% sale. I was greeted by a manager-ish woman who seemed like it was her first day on the job (you know, kind of like chain restaurant managers who come around and ask how your food is when they first start). Then I overheard one of the conversations she was having with a customer where she said that all this was "unexpected" and that the store would probably be around for 5 or 6 weeks to clean out the stock. More than likely, the 20% off will go down.

One odd thing: the person said that the liquidation company that bought them out does NOT take Chase credit / debit cards, which isn't a big deal to many around the country but undoubtedly is in a place where it's the primary branch. Didn't bug me since 20% off at their regular prices didn't seem too savory on any of their media, let alone only 10% off on their audio / video equipment.
Old 11-10-08, 10:24 AM
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Are the "clearance" stores taking gift cards?
Old 11-10-08, 01:47 PM
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Although I hate shopping at Circuit City, it sucks for competitive prices overall. You really only have Best Buy and Walmart to set brick and mortar prices and I'm not too crazy about that.

I wonder if Frys would step up and buy some of the Circuit City locations to step up their retail presence.
Old 11-10-08, 03:43 PM
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Originally Posted by cdollaz
Blame it on the economy, but the fact is that CC is just a shitty store, compared with it's major competitor(s). I don't know anyone that has shopped there in years.
The economy does play a part.

Circuit City has been teetering on the edge of the abyss for years. The recession finally pushed them over.

In the coming year, we're probably going to be seeing a lot of businesses who have been on the edge for a while finally dying.
Old 11-10-08, 04:15 PM
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sounds like CC is in worse trouble then first thought.. also use your gift cards up i heard on the news some CC stores wont take gift cards anymore....
Old 11-10-08, 04:41 PM
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As I recall, gift cards are treated as payables in Bankruptcy court, and as such, the obligation on the party filing bankruptcy is waived.

(I'm not sure if this is the same for Chapter 11, which is different than a "straight 7").
Old 11-10-08, 04:50 PM
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Old 11-10-08, 05:14 PM
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Originally Posted by chanster
Forget gift cards, how about rebates! If you have a CC rebate you are in deep doo doo.
That is unless you have an extended warranty on something like an HD TV. Our LG HD-TV went bad just 2 weeks ago & we'd bought an extended warranty. The way that warranty worked was that if they could not repair the TV they would issue a CC GC for the amount we either paid, or what it would cost to get another LG TV of the same measurements, specs, & all that if the model we have is not available. We kept riding their asses every day to get that TV fixed or give us a GC pronto, they kept taking their sweet time, then a part came in the wrong box & it wasn't the part they needed, etc... We got it all taken care of just in time because had that GC been given to us too late we would be out a TV & no redemption accepted on the GC due to the bankruptcy. (why they do a GC & not a refund or store credit is beyond me.) How that extended warranty would work now I don't know. Hopefully we won't have to find out.

Last edited by fitlissa76; 11-10-08 at 05:17 PM.
Old 11-10-08, 06:25 PM
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Originally Posted by Trevor
Are the "clearance" stores taking gift cards?
I was at the one in Massapequa, NY earlier tonight, and no they weren't.

CDs/Dvd's = 20% off.

Mostly everything else was 10% off.
Old 11-10-08, 08:27 PM
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Re: CityAdvantage/Extended Warranties

ALL CC warranties are backed by a third party.

http://www.circuitcity.com/image/web...vice_guide.pdf

Federal Warranty Service Corporation or GE backs the warranty depending on where you live.
Old 11-10-08, 08:54 PM
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CC isn't vanishing, they're just closing a bunch of stores and using the bankruptcy to not pay bills. It's happened before with other companies that are still in business.

No CC stores are closing in my entire state. No sales for me.
Old 11-10-08, 10:20 PM
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I wonder what they were going to have on sale this Black Friday.
Old 11-11-08, 08:12 AM
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Wow…I guess I’m in the minority that prefers CC to Best Buy. I find most CC stores to be well laid out, and you can usually get someone to help you if you need it.

Best Buy seems to always be a mess, and staff is nowhere to be found.

At CC I’ve found them to be willing to hop on the computer to find out if something is in stock, at Best Buy I’ve gotten blank stares or “I’ve never heard of it.”

Granted, the store that is closing at 86th Street in NYC is laid out terribly, but so is the Best Buy up the block.
Old 11-11-08, 09:55 AM
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Originally Posted by Josh-da-man
I wonder what they are going to have on sale this Black Friday.
fixed

The company isn't going away.
Old 11-11-08, 03:56 PM
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Originally Posted by BackStJoe
At CC I’ve found them to be willing to hop on the computer to find out if something is in stock, at Best Buy I’ve gotten blank stares or “I’ve never heard of it.”
As others can attest, all CC employees do is go on the computer, go online to their own online site, and look up the product. This does not work for items like DVDs that do not have in-store pickup, but they do it anyway.

At Best Buy, the employees may ignore you for a while if you're browsing for DVDs, but at least you'll have an easier time finding product because the layout is usually much better.
Old 11-11-08, 07:04 PM
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Anyone shopping there make sure you use the $15 off $100 coupons that they have been passing out like candy for months.

I used up my gift cards today, picking up Guitar Hero 3 with one coupon/gift card combo, and a digital photo frame with another.
Old 11-14-08, 05:59 PM
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Buyer be ware!!!

Be carefule buying anything at any of the closing Circuit Citys. I purchased a 46" Sony Bravia TV this morning and when I got it home and started unboxing it, I saw that the screen was shattered. Boxed it all back up, took it back to Circuit City and they would not replace it or refund my money. I now have to work through Sony to have it inspected and then repaired or replaced which will take weeks/months. So, if you buy anything, open the box before leaving the store and I'd even suggest plugging the item in to make sure it works.

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