Tech & Biz

Circuit City Liquidating, Closing all US Stores

by Jordan Yerman | January 16, 2009 at 09:07 am

626 views | 13 Recommendations | 7 comments

Circuit City, a major consumer electronics retailer had had filed for bankruptcy last year, has failed to secure a buyer and is now liquidating its existing inventory and closing its US stores.

All of its US retail locations will close, and 30,000 people will lose their jobs.

Circuit City, which filed for bankruptcy late last year, said in a statement that its attempt to sell itself fell through. The company will now close its doors eliminating 30,000 jobs.

"We are extremely disappointed by this outcome. The company had been in continuous negotiations regarding a going concern transaction. 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 to structure a going-concern transaction in the limited timeframe available, and so this is the only possible path for our company," said James A. Marcum, vice chairman and acting president and chief executive officer for Circuit City Stores, Inc.

Circuit City, based in Richmond, Va., has become the latest in a growing line of retailers to shutter completely, as the recession weighs down on consumers’ appetite for everything from clothes to pricey flat-screen TV’s.

The articles above do not discuss The Source, Circuit City's Canadian stores, which seem to be functioning normally up here.
(The Source was formerly owned by Radio Shack)

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Jennings David L

at 11:29 on January 16th, 2009

Looks like the economy is going to get worse before it gets better.

mgmirkin

at 12:03 on January 16th, 2009

First CompUSA folded, now Circuit City. Who's next? Fry's Electronics, Best Buy? Are there really any other big box electronics stores out there?

Didn't quite expect this. Though I did recently get a memo from a job developer who works where I do on a LOT of closings and store reductions. It sais Circuit City would be shuttering a number of under-performing stores, but not that it would fold completely... This is unfortunate news, if accurate. :o(

Though, my dad will probably be happy, as he took a computer in to have it cleaned out (air-dusted) ONLY and it came back with a dead motherboard, which they refused to fix, claiming it wasn't their fault it came in working and left dead. So, I guess maybe they do get what's coming to them from that kind of bad customer service. Personally, I've never had a problem with them and actually got a great deal on a camera over Christmas '07... I always hate to see a reduction in choices and competition, especially in the tech sector, as tech can be pricey.

mgmirkin

at 12:06 on January 16th, 2009

Straight from the Horse's Mouth...

(Circuit City Stores, Inc. to Liquidate)
http://investor.circuitcity.com/releasedetail.cfm?ReleaseID=359619

Yup. Ouch!

Regards,
~Michael Gmirkin

Jordan Yerman

at 12:19 on January 16th, 2009

I haven't shopped at Circuit City for at least 12 years (though the stereo components are all still working, though no longer mine), but I recall a bewildering shopping experience in which the staff tried to sell me everything except the three items on my list...

Up here, the closest comparison would be Futureshop, since The Source is pretty much the same as Radio Shack.