Circuit City goes belly up

[redrumloa]

Bankrupt Circuit City Stores Inc., the nation's second-biggest consumer electronics retailer, said Friday it failed to find a buyer and will liquidate its 567 U.S. stores. The closures could send another 30,000 people into the ranks of the unemployed.

http://news.yahoo.com/s/ap/20090116/ap_ ... bankruptcy

Circuit City was a dirt bag company, but most of the 30,000 employees were regular Joe's trying to make a living. Part of the blame goes to dirt bag management, part of the blame goes to the economy collapse.

 

[FluffyMcDeath]

More mall vacancies then, with concurrent loss of rental income making it harder for commercial property owners to pay the mortgages (especially when you lose anchor stores because then your traffic is gone and all the little stores close too) leading to big losses for banks.
Citigroup to be broken up. Bank of America may follow.

BTW, did you hear about the Pentagon report that cites Pakistan and Mexico as being in real danger of social collapse leading to US military intervention?

Invade Mexico? That's like a US wet dream, no?

Ah. Interesting times.

 

[ScapeGoat]

My sister is a big wig at Bank of America. (Charlotte)

I asked her about a fortnight ago if her job was ok and she said she thought so........

I don't think anyone's job is safe for the time being !!
There is strong rumour that DSG group here in UK is about to bite the big one too. DSG are the Dixon group who own Pc World (Uk) Curry's (electrical) etc so I guess it's the equivalent of Circuit City.

As the Human League sang in 1981... Haaaaaard Times !!

 

[faethor]

It's more amazing that Circuit City didn't do this 5 years ago. I guess firing all the experienced employees gave the company enough boost the management could skim any profits for a couple more years.

 

[Wayne]

I just wanna know if I can buy a new TV at the resulting fire sale?

 

[faethor]

Wayne -- the Website is an ad for them quitting the US an punishing Canada by existing there.

Anyway it appears the liquidation is taking place by a 3rd party. 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. There will likely be TV sets.

I know CompUSA had a few HDTVs on sale when they closed shop a few years back. The discounts weren't great nor were the models. Circuit City might be a bit better.

I guess I'll see what the 360, PS3, and DS game discounts are like.

 

[Wayne]

Lee and I were in there a few weeks ago looking for a PS3 and they already looked like they were stocking down. No game systems in sight.