AfterDawn: News

Circuit City begins liquidation

Circuit City has begun liquidation sales at its remaining 567 U.S. stores, meaning the company will not be coming out of bankruptcy as hoped.

Last month, the giant retailer, which employs over 30,000 US workers, filed for Chapter 11 bankruptcy protection after suppliers cut off most credit.



The company estimated its remaining inventory at $1.3 billion and said creditors will receive 70.5 percent of all revenue from the liquidation. Stockholders will get nothing.

The liquidation sales will end on March 31st when the company completely goes out of business.

“Regrettably for the more than 30,000 employees of Circuit City and our loyal customers, we were unable to reach an agreement with our creditors and lenders,” James A. Marcum, the current CEO added.

Written by: Andre Yoskowitz @ 17 Jan 2009 1:49

• Previous article

• YouTube coming for Wii, PS3

• Next article

• App Store hits half billion downloads

• 28 comments

• hikaricor

  Just in time! I should have my tax refund back within a week.
  
  Time to go shopping at massively discounted prices.

  17.1.2009 02:10 #1

• iluvendo

  Circuit city was really never that good. This maybe the reason for failure.
  

  "The flimsier the product,the higher the price"
  Ferengi 82nd rule of aqusition
  
  

  17.1.2009 02:15 #2

• smokyrain

  This is true, but if they have good sales while they are closing I will buy.
  That is if they are closing in Canada also. Here they are called Circuit City The Source.
  

  
  

  17.1.2009 02:45 #3

• JaguarGod

  It will be tough to find a good deal. Starting today, price cuts will be 10% - 30% off. Probably anything useful will be 10% off and it will still sell out. It is very hard to find anything worth buying from liquidations. I remember the last one I went to, all I bought was boxes of Extra Gum.

  17.1.2009 02:55 #4

• Edikiss

  Wow 30.000 out a work.

  17.1.2009 03:19 #5

• hikaricor

  Originally posted by Edikiss: Wow 30.000 out a work.we all know no decent human beings work at the BuyMore.... I mean Circuit City

  17.1.2009 04:43 #6

• Blackjax

  Yep it will be a come one come all sale, after they mark everything up %80. At least thats what they did at the stores closing near where I live. Their "deals" were not as good as the competitors normal sales. Poor management is why they are putting 30k out of work, but you can bet the management will rely on those golden chutes!

  17.1.2009 06:20 #7

• Blessedon

  No one mentions how ironic it is that be$tbuy remains in business using blatant bait-and-switch on every sale item, while Circuitshty is plundered, leaving a monopolistic consumer electronics carrion to prey upon us.

  17.1.2009 08:34 #8

• Oner

  Blessedon ~ I agree, but that's okay...just more Newegg, TigerDirect (which is also CompUSA now), Slickdeals.net, Ebay and other online shopping sites to go and get REAL deals. And if I need to go into a brick & mortar store then use the net to my advantage to find the best deal before I even leave my house!
  
  Blackjax ~ Tell me about it. EVERY single "liquidation" sale I have been too never had a good deal in sight.
  

  
  
  Search > http://forums.afterdawn.com/search
  Rules > http://forums.afterdawn.com/thread_view.cfm/2487
  Important Rule > http://forums.afterdawn.com/thread_view.cfm/380660

  17.1.2009 11:25 #9

• Globe08

  I used to work there and i can tell you the reason their going under is they pay their employees too much and allow them to discount the t.v's way too low if they will get the circuit city protection plans. Their whole sales model was out of whack,all they cared about is meeting the days goals and they lose money just to make the days projection.They didnt employ re-stocking fees at the right times cough superbowl time cough. They'd let someone buy a 4000 dollar xbr for the superbowl and then theyd return it a day later and circuit city would make it an open box special.So they had so many employess losing their money which as long as they were getting the protection plans they were giving them raises cause thats all they care about and they do anything to get them sold(protection plans) that is.

  17.1.2009 12:23 #10

• iluvendo

  Originally posted by Globe08: I used to work there and i can tell you the reason their going under is they pay their employees too much and allow them to discount the t.v's way too low if they will get the circuit city protection plans. Their whole sales model was out of whack,all they cared about is meeting the days goals and they lose money just to make the days projection.They didnt employ re-stocking fees at the right times cough superbowl time cough. They'd let someone buy a 4000 dollar xbr for the superbowl and then theyd return it a day later and circuit city would make it an open box special.So they had so many employess losing their money which as long as they were getting the protection plans they were giving them raises cause thats all they care about and they do anything to get them sold(protection plans) that is.
  "Protection plans ?"
  
  Sounds like the mafia ! lol
  

  "The flimsier the product,the higher the price"
  Ferengi 82nd rule of aqusition
  
  

  17.1.2009 12:28 #11

• BC2002#1

  Remember, if you do make purchase from Circuit City and you happen have a problem with the item(s), you will not be able to get refund or return. Then you will have to deal directly with the company. Pass experience I have had, was a pain and costly. Also, shop around local and internet for the same item and compare. Some stores, do price matching as well!

  17.1.2009 14:09 #12

• sgriesch

  Originally posted by smokyrain: This is true, but if they have good sales while they are closing I will buy.
  That is if they are closing in Canada also. Here they are called Circuit City The Source.No, the Canadian stores are not part of this. Just US.

  18.1.2009 00:29 #13

• sgriesch

  Originally posted by Blackjax: Yep it will be a come one come all sale, after they mark everything up %80. At least thats what they did at the stores closing near where I live. Their "deals" were not as good as the competitors normal sales. Poor management is why they are putting 30k out of work, but you can bet the management will rely on those golden chutes!I talked with one of the managers today. He said the sales today are actually better now than the ones coming soon. Up 'til Sunday they remain at current prices with 10% off. Starting Sunday, they will go back up to the inflated original price, and then take the 10% off. I went to get a few things, but they weren't even on sale at all. I ended up buying them across the street because I could actually return them if they didn't work. Nothing purchased after 1-16-09 may be returned or exchanged. If you want to take a chance, go ahead. I wouldn't want to pay for shipping on a TV through UPS or the like.

  18.1.2009 00:37 #14

• sgriesch

  Originally posted by Blessedon: No one mentions how ironic it is that be$tbuy remains in business using blatant bait-and-switch on every sale item, while Circuitshty is plundered, leaving a monopolistic consumer electronics carrion to prey upon us.As dramatic as that was worded, it's completely true. Everyone wins when there is competition. I wouldn't buy any electronics from Wal-Mart, Target, or K-Mart. They carry just the basics. Circuit City was about the only real competition Best Buy had. That means Best Buy doesn't need to keep prices as low to compete. They don't really have much competition. The internet is the only other alternative, but I like to physically see the product before I buy it. While it wasn't the most consumer or employeee friendly place, I will miss it because it helped to keep Best Buy in check.

  18.1.2009 00:45 #15

• Globe08

  Quote:Originally posted by Globe08: I used to work there and i can tell you the reason their going under is they pay their employees too much and allow them to discount the t.v's way too low if they will get the circuit city protection plans. Their whole sales model was out of whack,all they cared about is meeting the days goals and they lose money just to make the days projection.They didnt employ re-stocking fees at the right times cough superbowl time cough. They'd let someone buy a 4000 dollar xbr for the superbowl and then theyd return it a day later and circuit city would make it an open box special.So they had so many employess losing their money which as long as they were getting the protection plans they were giving them raises cause thats all they care about and they do anything to get them sold(protection plans) that is.
  "Protection plans ?"
  
  Sounds like the mafia ! lol
  I like the mafia

  18.1.2009 10:58 #16

• core2kid

  Originally posted by iluvendo: Circuit city was really never that good. This maybe the reason for failure.
  Their online site was a lot better than the stores. Best Buy feels a lot more "at home" when you go to buy electronics.
  I wonder if the 52" Sony XBR HDTV and BDP-S350 BluRay Player that I got for 2300 instead of $3750 helped them go into bankrupcy? Oh well, I have the TV.
  I'm not that much of a jacka$$, I really feel bad for the company and all the people that invested in it and ended up losing money. I especially feel bad for the 34,000 (I believe was the estimate) people that lost their jobs. Hope you find another job just as great (if CC was great) with the same pay (if their pay was good)

  19.1.2009 21:15 #17

• Globe08

  Not meant to be mean but people in retail dont on the whole make decent money and their jobs are dealing with a$$whole customers so coming from past experience their next jobs will probably be just as good or worse than c-city

  20.1.2009 13:39 #18

• cyprusrom

  Anyone around that shops at Fry's Electronics? They are not as popular/expanded as Best Buy or Circuit City, but so far the best brick&mortar store that I came across.

  22.1.2009 10:00 #19

• sgriesch

  Originally posted by Globe08: Not meant to be mean but people in retail dont on the whole make decent money and their jobs are dealing with a$$whole customers so coming from past experience their next jobs will probably be just as good or worse than c-cityThat's true. Different management, same a$$hole customers. Commissioned sales associates tend to make a decent pay if they are good.

  22.1.2009 12:48 #20

• Globe08

  Quote:Originally posted by Globe08: Not meant to be mean but people in retail dont on the whole make decent money and their jobs are dealing with a$$whole customers so coming from past experience their next jobs will probably be just as good or worse than c-cityThat's true. Different management, same a$$hole customers. Commissioned sales associates tend to make a decent pay if they are good.yeh i had a couple of buddies who are still working atg c city and they made crazy money for what they do. Their liek sleezy car salesman but thats in part to why c city is hurting is how much they were paying their associates in the entertainment dept.

  22.1.2009 15:44 #21

• sgriesch

  Quote:Quote:Originally posted by Globe08: Not meant to be mean but people in retail dont on the whole make decent money and their jobs are dealing with a$$whole customers so coming from past experience their next jobs will probably be just as good or worse than c-cityThat's true. Different management, same a$$hole customers. Commissioned sales associates tend to make a decent pay if they are good.yeh i had a couple of buddies who are still working atg c city and they made crazy money for what they do. Their liek sleezy car salesman but thats in part to why c city is hurting is how much they were paying their associates in the entertainment dept.They only paid their commissioned associates well. When they fired all of them in 2003, the average pay went way down. Best Buy doesn't pay very well either. That's why the sales guys don't care. It's not a good job.

  22.1.2009 15:53 #22

• chnky18

  http://consumerist.com/5137962/behold-an...n-sale-is-awful
  
  another reason not to waste time at liquidation sales....its just like compusa liquidation sales.

  23.1.2009 15:45 #23

• dailun

  Originally posted by cyprusrom: Anyone around that shops at Fry's Electronics? They are not as popular/expanded as Best Buy or Circuit City, but so far the best brick&mortar store that I came across.If AND ONLY IF you know exactly what you're looking for and are just shopping for the low price.
  
  The noobs and ignorant people complain about Fry's because "there's no Customer Support". Fry's has Customer Support, just no a** wiping for people too lazy or ignorant to do their homework.
  
  You want full service, got to a full service store and pay full service prices. That DOES NOT include Best Buy or Circuit City or Fry's.
  
  Oops. Sorry, I digressed. I do not expect the CC Liquidation to yield much. The bankruptcy committee will insist on a certain level of pricing to be maintained. The inventory was probably "cherry picked" weeks ago anyway. Nothing but junk left.

  23.1.2009 16:57 #24

• samhouch

  Don't forget about Staples, Office Depot, Office Max, and Micro Center as alternatives to BestBuy and Wally -World. I've been surprised the times the office stores had better deals on electronics.
  
  I feel for the 30,000 employees and the dent in the electronics competition, though. I wish the employees well...
  
  I haven't seen good deals at a going out of business sale since the day Montgomery Wards announced they were going out of business. The workers found out from the news shows the same way and same day everyone else did. That same day, they were offering firesale prices against policy on floor models of furniture, until they cracked down on it. When I went back for the official sale, like CompUSA's out of business sale, their 30%-80% off prices were higher than competitors sale prices, or for things that couldn't be sold. Rediculous, deceptive liars... I mean lawyers.

  25.1.2009 22:28 #25

• Bluto1841

  Originally posted by BC2002#1: Remember, if you do make purchase from Circuit City and you happen have a problem with the item(s), you will not be able to get refund or return. Then you will have to deal directly with the company. Pass experience I have had, was a pain and costly. Also, shop around local and internet for the same item and compare. Some stores, do price matching as well!That's nothing new that you will not get a refund or return. I had that experience with them way before they were in deep doo doo. I never did get satisfaction and still have their defective junk. They claimed that my time ran out on their 90 day return when I showed them the receipt which was their error in spite of a defective item.
  
  Perhaps losing customers while I and probably many others ranted and raved had something to do with their demise.

  25.1.2009 22:36 #26

• badaboy

  ,,,,,what is the matter with you guys...bankrupcy means no more stores in the future ..no more services or active warranties service options...all what is sold is on your own responsibility to absorb if defective unless it is a well known and healty brand name ...on the day it fails
  ,,,as a rule i do not buy from any bankrupcy sale unless the brand is a secured name company .... i buy from a store wich is staying on the map to give me service,,,maybe a little more costly ...but i get satisfaction for years to come
  ,,,mmost times those sales have rigged up prices ...not worth it

  25.1.2009 22:50 #27

• sgriesch

  Originally posted by badaboy: no more services or active warranties service options...all what is sold is on your own responsibility to absorb if defective unless it is a well known and healty brand name ...on the day it failsThe service plans are still valid as they are through third party companies. Also, the manufacturer warranties still apply, though I would rather take it back to a store if it was broke straight out of the box.

  26.1.2009 00:36 #28