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Re: Circuit City to close all stores
Circuit City to liquidate remaining US stores
Circuit City and liquidators to sell off merchandise in remaining 567 US stores
Michael Felberbaum and Vinnee Tong, AP Business Writers
Circuit City Stores Inc., the nation's second-biggest consumer electronics retailer, reached an agreement with liquidators on Friday to sell the merchandise in its 567 U.S. stores after failing to find a buyer or a refinancing deal.
The company, which employs more than 30,000 employees, said in court papers it has appointed Great American Group LLC, Hudson Capital Partners LLC, SB Capital Group LLC and Tiger Capital Group LLC as liquidators.
Calls to the Richmond, Va.-based company and the liquidators were not immediately returned.
Circuit City filed for Chapter 11 bankruptcy protection in November as vendors started to restrict the flow of merchandise ahead of the busy holiday shopping season.
It had been exploring strategic alternatives since May, when it opened its books to Blockbuster Inc. The Dallas-based movie-rental chain made a takeover bid of more than $1 billion with plans to create a 9,300-store chain to sell electronic gadgets and rent movies and games. Blockbuster withdrew the bid in July because of market conditions.
Circuit City, which said it had $3.4 billion in assets and $2.32 billion in liabilities as of Aug. 31, said in its initial filings that it planned to emerge from court protection in the first half of this year.
Under court protection, Circuit City has broken 150 leases at locations where it no longer operates stores. The company already closed 155 stores in the U.S. in November and December.
U.S. Bankruptcy Judge Kevin Huennekens had given the company permission to liquidate if a buyout was not achieved.
Re: Circuit City to close all stores
It's amazing how many people will blink, and totally move on with this...
Someone said to me earlier today, and it's really stuck with me...
"...it begins"
It was such a nihilistic inflection, but I don't think people truely realize the significance of this. The state of the American and really World economy has now claimed the life of a BIG BOX corporation.
This is HUGE.
- Randall Flagg
- Rep: 139
Re: Circuit City to close all stores
What do you expect? They were competing in a very flooded market with lousy prices. What's the difference between Best Buy and Circuit City? Best Buy is bigger and sells more merchandise at better prices. There used to be an electronics franchise in the Ohio Valley (maybe it was larger than that) named SUN TV and Appliances. I remember when Circuit City opened up at our mall, everyone quit going to Sun and went there. About a year ago, a Best Buy opened up in the nearby shopping center. People started going there instead of circuit city.
I never had an issue with Circuit City. It was a nice computer parts stores back when buying your own parts was the savy thing to do. It's a fact the economy is sucking right now, and part of me feels bad for those who lose their job. But the other part of me says blame them. People with marketable skills don't stay unemployed. Simple as that and read into it what you will.
I've done almost every kind of job you can imagine. Cook at Long John Silvers, Sales Associate at Game Stop, Janitor, Concrete Layer, IS Support, Customer Service Rep and now I'm in the Army. Only in the Army did I ever feel any kind of job support, though even I know a day may come where they downsize the military and I go packing. America's sense of entitlement and refusal to live within its means are to blame for this fiasco. There is nothing wrong with shopping at Wal-Mart. What is wrong is when you live pay check to pay check cause you buy every new DVD or video game at Wal-Mart and don't save or have any investments. Enough preaching for now.
- tejastech08
- Rep: 194
Re: Circuit City to close all stores
I feel bad for the employees but not the company itself. Where I live, our Circuit City is trashy compared to Best Buy. Their prices are no better than Best Buy (both are huge ripoffs for the most part).
Re: Circuit City to close all stores
Every sunday I go to bestbuy.com and circuitcity.com to look at their ads. I just went to circuitcity.com and this is the only thing on their website:
Circuit City would like to thank all of the customers who have shopped with us over the past 60 years. Unfortunately, we announced on January 16, 2009, that we are going out of business.
Please check back later for updates about the status of our website. In the meantime, we hope the information below will help answer most of your questions.
What's going on at Circuit City?
* Due to challenges to our business and the continued bleak economic environment, Circuit City is going out of business and the company's assets will be liquidated to pay off creditors.
* The process was extremely difficult and we were left with no other choice but to liquidate. Circuit City had a proud heritage of serving the public for 60 years and we deeply regret the impact this decision will have on our associates, our customers and the communities where we have operated stores and other facilities.
* We had hoped to be able to emerge from Chapter 11 bankruptcy protection as a stronger, more competitive company and we made significant progress during the reorganization to improve our business. Unfortunately, the economic climate is so poor that we have no choice other than liquidation.
* Liquidators will start arriving in our 567 stores across the U.S. over the weekend, and closing sales will start as early as Saturday, January 17. Closing sales will run as long as it takes to sell existing inventory, but are expected to wrap up by the end of March. When the liquidation sales are completed, the stores will be closed.
* At the company's corporate offices in Richmond, Virginia, a small staff will remain on duty during the completion of the liquidation process; most associates will be relieved of their duties immediately.
* Consistent with federal labor laws, Circuit City associates are receiving 60-days notice of the termination of their employment. Those who stay on to help with the liquidation, of course, will receive pay and benefits. Those who are dismissed earlier will be receiving pay and benefits for the 60-day period beginning January 16, 2009.
* Associates at our company headquarters will be asked to come back on Monday, January 19, to find out more about their status and to retrieve their personal belongings.
Are you also shutting down your operations in Canada?
* No, our Canadian operations will continue. They are not affected by the liquidation of Circuit City's U.S. operations. The Canadian operations employ approximately 3,000 associates.
How many people are losing their jobs as a result of this action?
* Circuit City employs approximately 34,000 associates in the U.S.
Can you provide some background on Circuit City?
* Founded in 1949 as the Wards Company, Circuit City is headquartered in Richmond, Virginia. At the time of the liquidation announcement (January 16, 2009), the company operated 567 stores in 153 media markets in the U.S. and approximately 765 retail stores and dealer outlets in Canada.
* For a timeline history of the company, go to http://investor.circuitcity.com, and click on Company Information.
Will Circuit City stores continue to accept Circuit City gift cards?
* Yes, customers holding Circuit City gift cards may redeem them at full value at our stores during the liquidation sales. Once the stores are closed and the company is out of business, the gift cards will have no value.
Are Circuit City's extended warranties affected by the liquidation?
* No. Circuit City Advantage Protection Plans® (extended warranties) have been backed by third-party independent companies for more than 15 years and as a result, are not impacted by Circuit City's closing.
* Currently, all Circuit City Advantage Protection Plans are fully backed by the Assurant Solutions companies. Assurant Solutions operates as Federal Warranty Service Corporation, Sureway, Inc., and United Service Protection, Inc. Assurant Solutions is part of Assurant, Inc. (NYSE: AIZ), and its extended service contacts are backed by an Assurant insurance subsidiary rated A "Excellent" by A.M. Best Co.
When will the liquidation sales begin?
* Liquidation sales begin as early as Saturday, January 17, 2009, and will last as long as it takes to sell through the merchandise at each of the stores. We expect the sales to wrap up by the end of March 2009.
How much will merchandise be marked down, and can customers negotiate prices for the merchandise?
* There will be clearance pricing, but specific discounts are not being announced. All sale prices are at the discretion of the liquidator. Prices are non-negotiable and all adjustments must be approved by the liquidator's on-site managers.
What payment types will be accepted at the liquidation stores?
* Stores in liquidation will accept cash, Circuit City gift cards and most credit cards. Personal checks will not be accepted. All sales are final.
Will Circuit City's price matching policy or the One Price PromiseSM apply during the liquidation sale?
* Because the liquidation company is in charge of the sales at the closing stores, their policies are in force. So, One Price Promise does not apply during liquidation events, nor does the company's Unbeatable Price Guarantee. All sales are final.
What about returns and refunds?
* Customers can return products they purchased prior to January 16 for a 14-day period for exchange or refunds. All other terms of return policy are in force.
* When closing sales begin on or around January 17, 2009, all sales will be final.
Will delivery service be available for products purchased from liquidation stores?
* No. Unfortunately, we will not be able to provide delivery services for products purchased from liquidation stores.
Will Circuit City offer home theater installations during the closing sale?
* No, we will not be offering home installation services.
Will Circuit City offer PC services and repairs at liquidation stores during the closing sale?
* Services already underway at the liquidation stores will be completed promptly, but no additional jobs will be accepted at these stores.
Will car electronics installations be available at liquidation stores during the closing sale?
* No new car installations will be offered.
Will Circuit City's extended warranties still be available on products purchased from liquidation stores?
* Yes, we're making no changes to our Circuit City Advantage Protection Plans®. Coverage is national and purchases will still be protected just as they always were.
* Circuit City Advantage Protection Plans® have been backed by third-party independent companies for more than 15 years and as a result, are not impacted by Circuit City's bankruptcy or liquidation.
* Currently, all Circuit City Advantage Protection Plans are fully backed by the Assurant Solutions companies. Assurant Solutions operates as Federal Warranty Service Corporation, Sureway, Inc., and United Service Protection, Inc. Assurant Solutions is part of Assurant, Inc. (NYSE: AIZ), and its extended service contacts are backed by an Assurant insurance subsidiary rated A "Excellent" by A.M. Best Co.
What if a customer purchased products at one of the closing stores and the product needs service?
* For products covered under the manufacturer's warranty, customers should call the manufacturer.
* For products covered under Circuit City Advantage®, guests can call the toll-free number that is printed on the bottom of the product receipt.
» Read the press release about Circuit City's liquidation
» Learn more at our investor relations website
Re: Circuit City to close all stores
"The Company" from the Alien films is on the horizon.
There is no America. There is no democracy. There is only IBM, and ITT, and AT&T, and DuPont, Dow, Union Carbide, and Exxon. Those *are* the nations of the world today. What do you think the Russians talk about in their councils of state, Karl Marx? They get out their linear programming charts, statistical decision theories, minimax solutions, and compute the price-cost probabilities of their transactions and investments, just like we do. We no longer live in a world of nations and ideologies, Mr. Beale. The world is a college of corporations, inexorably determined by the immutable bylaws of business. The world is a business, Mr. Beale. It has been since man crawled out of the slime. And our children will live, Mr. Beale, to see that . . . perfect world . . . in which there's no war or famine, oppression or brutality. One vast and ecumenical holding company, for whom all men will work to serve a common profit, in which all men will hold a share of stock. All necessities provided, all anxieties tranquilized, all boredom amused.
And that was 30 years ago.
