Tech & Biz

After-Effects of Circuit City Bankruptcy

by Jordan Yerman | February 5, 2009 at 01:45 pm

479 views | 14 Recommendations | 4 comments

The article below discusses the after-effects of a big-box store going belly-up. When Circuit City went bankrupt, mayhem ensued as liquidators took over. Once the dust settles, though, the story is not over.

The stores themselves will be vacant: how many retailers would open in such large spaces these days? The parking lots, too: a store closure of this scale leaves a scar on the cityscape, both physically and economically: a glut of newly-unemployed workers, a smaller outlet for wholesalers, and unpaid debts to Circuit City's creditors.

Shopping centers will lose rental income. Suppliers will lose display space. Newspapers already struggling with falling ad revenues will have one less glossy insert in their Sunday editions.

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Eric Ambos

at 15:05 on February 5th, 2009

Bay Shore, NY 11706

This photo was taken of one of the first Circuit Citys to close, with its lettering already removed. The dirt and grime left behind shadows of the letters, showing a reminder of what it once was.

Eric Ambos has contributed a photo to this story.

Lynn Jacobs (not verified)

at 18:49 on February 5th, 2009

While I was sorry to hear that Circuit City was going down, I had to stop and wonder why I was surprised. Every time I went in there I was ignored. If I ever managed to snag a sales person to ask for help, it seemed that the guy who could answer my question was "right over there helping someone else." And even that much attention was rare. On the other hand whenever I've shopped at Best Buy the sales help is in the territory of their area of expertise and seem to always step up and offer assistance without my having to ask. So, I don't really remember why I even cared about Circuit City. Or why I still shopped there.

Except for the big picture net effect of huge empty boxes and parking lots, which seem to lead to a sort of urban (or town) decline. Things deteriorate so rapidly when empty, and there are more and more of them all the time. I keep waiting for the proverbial other shoe to drop.