[herawaq]

Circuit City, the nation's #2 electronics store chain, is about to close up some 155 of its stores and slice up thousands of jobs nationwide.

This comes on the heels that it has reported a record loss in shares, and that it has said that it needs to save money in order to keep its head above water.

It has also lost out on getting about an $80m tax refund, and says that in order to stay alive, it needs to take some measures to avoid filing for Chapter 11.

I've provided a link. For more info, please go here: http://www.msnbc.msn.com/id/27515440/ .

[JesikaFclq]

They are over priced and not with the times.

Most of the chains were like that. They cater to peopel who really do not know much about electronics, then they try to expand to include things like Music and Video, where the competition is already cuthroat.

Circuit Shi++y
Beast Buy
ChumpUSA

They were the three biggest purveyors of crap. Now C-USA is gone, and CC is following it.

I am also reminded of the metro areas "The Wiz" which bombed about 8 years ago or so. If I remember right, they used to be a pretty decent music/audio store. Last thing I saw them trying to sell before they went under was Washing Machines.

Go fig.

Sad to see competition go, but when you have two stores right next to each other and they have the same prices on everything......... (5th avenue I think, 44th and 43rd)

[DoctorBeny]

I had the same experience everytime I walked into a Circuit City:

• Rap music playing in the store with disturbingly strong bass sounds at a level too high to let me think or focus.
• Incredibly unprofessional staff with zero interest in servicing the customer.
• Teenagers monopolizing all of the operational models; preventing anyone else from testing products.
• Crappy displays and an inventory that always had me wonderig if they were near bankruptcy.

I won't miss them.

[margoaroyo]

In all fairness BR, the one on 5th is pretty nice.

I never experienced what you were going through, but I do have to admit that there are not many there to help you out if you have a question (on the first floor). They are all upstairs trying to "help" you with the Plasma TV's and schtuff...

[Creva4k]

The Duane-Reade of electronics.

[malishka1025]

I have found the customer service in stores like that to be pretty bad. I always buy my puters online.

[attanilifardy]

I remember when such big-name big time stores like Bradlee's Woolworth, Caldor Lechmere, Ames and Filene's were all on top of the world, and like so many others, they've gone by the wayside and went out of business.

The recent credit crunch, I think, has a lot to do with CC making this decision, no doubt.

[RgtrsKfR]

I remember Woolworth's customer service hitting the skids a few years before they closed as well.

[vintsqyuid]

Also Fretter and Highlander.

[Loopyjr]

Circuit City here in The Bronx is set to close in about 6 weeks.

[sabbixsweraco]

Didn't look yet to see how many are closing in Massachusetts.

[mosypeSom]

Crain's New York

November 10. 2008 8:54AM

Circuit City files for Chapter 11 protection

The Virginia-based electronics retailer has been struggling as nervous consumers spend less and credit has become tighter; it announced plans to close 155 stores last week.



(AP) - 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 155, or 20%, of its stores and lay off thousands of workers.

In the New York area, the retailer had announced plans to shutter eight stores in New York state, including its Gunhill Road location in the Bronx, Flatbush location in Brooklyn and 86th Street store in Manhattan. Circuit City also announced plans ot close two stores in New Jersey and one in Connecticut.

"This isn't a surprise," J.P. Morgan 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," Mr. Horvers said. "If they can get inventory into the stores, I can think they'll remain competitive."

The company's biggest creditors are its vendors: Hewlett-Packard has a $118.8 million claim followed by Samsung ($115.9 million), Sony ($60 million), Zenith ($41.2 million), Toshiba ($17.9 million) and others. Smaller creditors include GPS navigation system maker Garmin, Nikon, Lenovo, Eastman Kodak and Mitsubishi.

Mr. Horvers 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.

Loans to operate while in bankruptcy are called debtor-in-possession, or DIP, loans.

"That's a big DIP in the current market," said John Penn, a partner at Haynes & Boone who is not involved in the case. "To secure that size DIP now is quite a achievement. With the news of the cuts last week — and vendors wanting to know they can get paid — having a recognizable source like a DIP can calm a lot of vendor concerns."

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

The rest of Circuit City's store closures are spread throughout 28 states, including multiple locations in areas like Phoenix and Atlanta. It is laying off about 17% 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% decline in sales at stores open at least a year. The company has been under new leadership since late September when Chief Executive Philip Schoonover agreed to step down. He was replaced by James 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.


©Copyright 2008 Associated Press. All rights reserved.

[WapSaibiar]

Yeah, I KNEW that this would happen real soon. I suspected it when it was revealed that their shares began to plummet.

No stores in Massachusetts are affected as of now.

Boy! I'm so glad that I don't have to do hard labor woork any more!!

But I know what it's like to be working for a co that has filed for bankruptcy. Next will come tons of job cuts (layoffs), paycuts, cuts in benefits, shift changes, the whole nine yards!

I've been through it all before.

[adarmaSen]

Yeah, I KNEW that this would happen real soon. I suspected it when it was revealed that their shares began to plummet.

No stores in Massachusetts are affected as of now.

Boy! I'm so glad that I don't have to do hard labor woork any more!!

But I know what it's like to be working for a co that has filed for bankruptcy. Next will come tons of job cuts (layoffs), paycuts, cuts in benefits, shift changes, the whole nine yards!

I've been through it all before.

It's offical now!

Circuit City is going out of business and will close ALL of its stores nationwide.

This comes on the heels of them not being able to find a buyer to help get them out of the financial slump they're in and also the sagging economy.

In addition, thousands of employees will lose their jobs, forcing them to sign up for unemployment payments.

No word on when the liquidation sale begins yet.

This might be the chance to buy that big-screen HD TV that you've been thinking about getting!

[Sadsidioribre]

See what happens when you fire your best salespeople and hire a bunch of high school kids?

[jobsfancy]

Yeah, I noticed that brain drain last week. Upon asking the sales kid a couple of questions, I quickly realized I knew more about the subject than he did. (to my surprise) Also, most items were tagged "out of stock".
The stench of finality hung in the air......

[Vapepreab]

My impression is that most of the gang who works the floor at Best Buy / Circuit City took the job for the hope of employee discounts.

95% are basically useless in the "help" department.

And why would anyone in NYC buy an Apple product from one of these stores when the same stuff is available for the exact same price at the much better managed Apple store(s)?

[Gasfghj]

My impression is that most of the gang who works the floor at Best Buy / Circuit City took the job for the hope of employee discounts.

Yes and no. It all depends on what they want the discount on. If it is stereo equipment and the like, maybe you will get a better helper.

If it is for the latest PS3 game or discounts on othe rmedia, fuggetaboutit.

95% are basically useless in the "help" department. Agreed. Sad part is when you ask for something and they do not even know what you are talking about. You almost have to draw them a picture.

And why would anyone in NYC buy an Apple product from one of these stores when the same stuff is available for the exact same price at the much better managed Apple store(s)? Employee discount?






As for the closing and discounts, they are all pretty much BS. The good stuff has or will be unloaded to other distributors if possible, leaving the scraps behind. And even those will linger at prices above what you can get online until there is nothing left but a 5 and 10 reminiscent "bargain bin".

When ChumpUSA went under a while back (2 years?) they did the same thing. Most of the games/movies/other media was absolute junk, teh prices on things like USB drives were still outrageous and there was little help to be found.

In all fairness, if I were working for them, I would be hiding the good stuff somewhere in the back until the % cranked up a bit and bought it for myself. You think they are doing any different?

(Oh, as for management on the corporate level. ANY company that puts their store RIGHT NEXT DOOR to their prime compeditor has GOT to hae something wrong in the head. 43rd-44th street, East side, 5th avenue. )