[MSUHitman]

Consumerist.com has a post today wondering if Circuit City will be going under before the holiday season is over as the Washington Post has a story today that a firm that advises companies whether to ship product to retailers/distributors has given a vote of no confidence essentially against Circuit City.

http://consumerist.c...-going-bankrupt

Some of the commenters are saying Circuit City may have to declare bankruptcy by next week!? I would be sort of sad to see CC go as they usually have great deals/clearance, just sometimes you have to go through a little trouble to get them.

What does the CAG community think?

Edit Nov. 2:
CC will announce on Nov. 3 the closure of 155 stores throughout the US.

Edit Jan. 9:
CC is in talks with two "interested parties" in selling their operations to stay open. If a deal is not reached by next Friday the 16th, CC across the nation could be forced to fully liquidate.

http://www.engadget....dmits-possibil/

Edit Jan 16th:
It's all over, expect immediate liquidation:

http://finance.yahoo...f-14083094.html
http://www.engadget....-be-liquidated/
http://www.iht.com/a...-Bankruptcy.php

Useful info:

Since I've already been through this I'll do my best to answer questions. Ignore much of the so-called information that some people are posting, a lot of it is dead wrong. Shrike's posts have all been on point, though.

http://money.cnn.com...=rss_topstories

CC's website's last day of operations will be Sunday.

Checks and CC credit cards will no longer be accepted once the liquidation starts.

Allegedly, liquidation starts Saturday (tomorrow). I called a store and they have not been told when the liquidation will start. When my store received notice (on a Sunday) we had standard operations that day and Monday, closed on Tuesday for retagging/repricing, and reopened on Wednesday under liquidator terms.

Darn it!!! I missed the cut off. My Chase Circuit City Rewards points are still in the mail. Plus I never got my credit back for my one gift card when I returned an item. Its only $25, but still.... Its $25



I wonder if you can negotiate on HDTV's with a manager??? I know some people have had luck in the past.

The CC Rewards work like gift cards so it should still be valid during liquidation. All prices will be set by the liquidators so haggling is very unlikely. Towards the end that might become a possibility but no guarantee.

This means that the stores and all their assets are now property of the liquidators. That also means that as of Monday, your gift cards and extended warranties are null. Better jump on that today, kids!

Wrong. Wrong. Wrong.

According to both the link at the top of my post and my own personal experience with my store closing, gift cards are fully valid during liquidation.

More useful info:

Hey Shrike, there were some very key points to this in the CNN Money report that neocisco linked to that may be good to add to the OP as well:

1. For our Canuck members, the Canadian stores will continue to operate as normal:

Circuit City also operates about 765 retail stores and dealer outlets in Canada. The company said its Canadian operations, which employ 3,000 workers, will continue to operate.

2. Gift Cards WILL be honored throughout the liquidation:

The company said it will redeem its gift cards through the liquidation sale, but the cards will have no value once the stores are closed.

3. There is still an extremely slim chance that someone will buy the remnants of Circuit City during the liquidation, thereby possibly allowing it to exist in some form:

At the same time, Whalin said there's still a very slim chance that one or more firms that have expressed an interest in buying Circuit City could still buy it out of bankruptcy over the next few days.
"I wouldn't say it's completely over yet for Circuit City, but it's almost over," Whalin said.

4. If someone buys what's left, they may get value out of the Circuit City name and more importantly, the website...so while the website will shut down on the 18th it may be back eventually:

"Circuit City isn't a viable business in its old incarnation when half of electronics sales have moved online," Goel said. "CompUSA and Tweeter also didn't make it for the same reason."
However, Goel speculated that Circuit City could still find a lifeline if Golden Gate Capital, one of the reported lead bidders for the merchant, bought the company and restructured it primarily as an online business with very few physical stores.
"This would eliminate overhead costs, vendor conflicts and other issues," he said. "Circuit City has an almost $1 billion online business. So there is a future for it in that regard."

Edited by shrike4242, 08 March 2009 - 03:14 AM.
Up to 90% on games on 03/07/09.

[Scorch]

This is like the third time this has happened. There was a bankruptcy scare like a year ago, too.

[LonelyController]

with Speedy1961, see what happens.

They'll do everything they can to stay open through the Christmas season. Then again, if credit is tight, and suppliers stop sending them product, maybe they'll have no choice.

[Friend of Sonic]

I think they will be relying on the holiday sales. And the economy isn't exactly accomdating to struggling corporations-- unless you're an automaker, or a major bank with billions in bad loans.

[IAmTheCheapestGamer]

If CNBC or another financial network reported on this, I might believe it. Since it's coming from the Consumerist, which I equate with soccer moms going on there to bitch about how they had to wait longer than 5 minutes to be waited on at Best Buy and how they should get a gift card for terrible service, I'm more inclined to just ignore the story.

Either way, if they DO go outta biz then maybe I can finally snag an HDtv for cheap.

Oh and this'll teach 'em for going after Speedy AND firing all of their seasoned employees.

[Antic]

Just curious, I bought a hdtv at CC last Black Friday and bought a 5 year warranty. If they go under, am I SOL on my warranty? Would they partially refund what I paid for a warranty too?

[nonggame]

CC stock is only 50 cents so time to buy!!! buy!! bye !!!! ^___^

[IAmTheCheapestGamer]

$0.42 actually according to the Consumerist piece. LOL Honestly though, even if Blockbuster's takeover bid were accepted,that would only abate the inevitable for so long, since I think Blockbuster isn't on that firm of a footing either.

[HotShotX]

The day CC goes under, Speedy should show up at their corporate HQ and say "Owned, Bitches."

~HotShotX

[Mr Unoriginal]

I thought CC was doing badly, but they are opening up a new store near me.

[Vinny]

If CNBC or another financial network reported on this, I might believe it. Since it's coming from the Consumerist, which I equate with soccer moms going on there to bitch about how they had to wait longer than 5 minutes to be waited on at Best Buy and how they should get a gift card for terrible service, I'm more inclined to just ignore the story.

Either way, if they DO go outta biz then maybe I can finally snag an HDtv for cheap.

Oh and this'll teach 'em for going after Speedy AND firing all of their seasoned employees.

Couldn't have said it any better.

I'll miss CC if they go under because I love their clearances and their recent giftcards with new releases has been pretty awesome.

[Pookymeister]

Just curious, I bought a hdtv at CC last Black Friday and bought a 5 year warranty. If they go under, am I SOL on my warranty? Would they partially refund what I paid for a warranty too?

I am curious about this too.

[InvaderZim]

Consumerist just 'blogged' the article from another site.

They are thinking CCity, Boarders, and Talbots will be the next 3 to go under. I read somewhere else (don't remember) that the people that work at CCity already know something is happening soon and that they would not start closing stores until Q1 09.

[IAmTheCheapestGamer]

Of course, even if they DO go under, you know their current CEO will get a nice severance package, while the hourly workers get the shaft, as always.

[InvaderZim]

Of course, even if they DO go under, you know their current CEO will get a nice severance package, while the hourly workers get the shaft, as always.

Ha ha... you know it. They can use that sweet sweet extended warranty money on hookers and blow!

[rodeojones903]

The day after Thanksgiving is a hard day for retailers, and that could really hurt CC. Having to compete against other places and sell items under cost will really hurt them.

[YoshiFan1]

I posted this in the CC clearance thread but my local CC has about 6 different PS3 games, they haven't appeared to get any games in a while and I am guessing they shipped off stuff to other stores. Not good. I hope they can make it as they have great clearance deals and I hate Best Buy

[addicted2games]

I'm not saying I want CC to go under, but if they do, maybe Best Buy will take over the building in my city. I dont like driving 20 miles to go to the nearest BB.

[DarkRider23]

CC>BB

I would hate for CC to go. If CC does go, you can get on BB's price going up by quite a lot.

[thelonepig]

There was a discussion on talk radio a few weeks ago regarding Blockbuster trying to buy out Circuit City. The piece was actually about Blockbuster's new CEO and the direction he wanted to take with the company, but they threw that in there.

Could be interesting.

My biggest complaint about Circuit City is that their corporate has no power over the stores, thus giving no real recourse for consumers or accountability for employees.

[Vinny]

Just curious, I bought a hdtv at CC last Black Friday and bought a 5 year warranty. If they go under, am I SOL on my warranty? Would they partially refund what I paid for a warranty too?

You're out of luck. Without CC, your extended warranty is basically non-existent as they contract third parties to do the work when and if it's needed.

CC>BB

I would hate for CC to go. If CC does go, you can get on BB's price going up by quite a lot.

I agree. I'm not talking about customer service or anything, that's too YMMV. But CC actually has sales/clearances I can take advantage off. BB rarely, if ever, has any good sales.

[halofreak64]

I thought CC was doing badly, but they are opening up a new store near me.

same here actually next to the best buy I work at, some of my fellow employees applied there and were offered jobs making like 13 a hour.
IM going to miss circuit citys sales thought.

[MrDubbs]

I thought CC was doing badly, but they are opening up a new store near me.

That means nothing, look at Krispy Kreme

[neocisco]

Regardless of how anyone feels about CC, no one should want to see them go. Only one nationl electronics retailer is bad for everyone.

$0.42 actually according to the Consumerist piece. LOL Honestly though, even if Blockbuster's takeover bid were accepted,that would only abate the inevitable for so long, since I think Blockbuster isn't on that firm of a footing either.

Blockbuster actually declined to pursue further interest in CC. They did their due diligence, essentially saw the assets and debts and realized that this is a mess they don't want any part of. For BB to say a company is a mess is really saying something.

Of course, even if they DO go under, you know their current CEO will get a nice severance package, while the hourly workers get the shaft, as always.

The CEO, Phil Schoonover, actually resigned a couple of weeks ago. I don't know what his severance was but anything more than a good kick in the ass was too much. The current (interim?) CEO, if I was told correctly, has a history of overseeing a good turnaround at Best Buy. At this point, though, it could very well be too late. It's hard to save a ship when the bow is already under water.

[Kerig]

Circuit City Historical Stock Chart:
http://chart.finance...o.com/c/1y/c/cc
http://www.advfn.com...=NY^CC&p=5&t=15
Amazing how their stock is now cheaper than anything else sold in their store.
4 CC Stock Certificates = 1 package of Mad Croc gum.

Edited by Kerig, 10 October 2008 - 09:19 PM.

[Bstiff]

Consumerist just 'blogged' the article from another site.

They are thinking CCity, Boarders, and Talbots will be the next 3 to go under. I read somewhere else (don't remember) that the people that work at CCity already know something is happening soon and that they would not start closing stores until Q1 09.

This would explain my LAST experience at CC. I went in to buy a cordless phone for my folks. After picking it up, I wandered around aimlessly near the registers as none of them seemed to be open. I finally saw a guy walking near the registers and he pointed me to the customer service desk. The were two girls working the counter. I asked one of the girls is that was where I checked out. She said " Oh just get one of the guys off the floor." This from someone standing directly behind a register. I said it and left it laying on the counter. I heard a while ago a bunch of the cc stores were going to be closing. I wonder if the clearwater store is one. The place has looked like shit for months and everything is just thrown on the shelves in no particular order. It's like the K mart of electronics stores. The only good thing was I bought a samsung 46a630 for like $300 less than BB including tax. I did the instore pickup thing though so I wasn't such a pain in the ass.

[kaw]

Don't fret I'm sure a 50 billion dollar Circuit City bailout is on the way!

Edited by kaw, 10 October 2008 - 08:10 PM.

[nasum]

A big box store like that can continue to operate even while bankrupt, though that doesn't mean that some locations won't close and you'll get a glut of newbie employees every 3 months to cut down on paying benefits and raises.

[pazuzuindc]

Just curious, I bought a hdtv at CC last Black Friday and bought a 5 year warranty. If they go under, am I SOL on my warranty? Would they partially refund what I paid for a warranty too?

if the warranty is underwritten by circuit city (they pay for repairs) then you are sol but if another company does then you are ok. When montgomery ward closed down years back all their customers were sol because they backed the warranties.

I know best buy uses another company for their service plans.

btw why did you buy it. c. city is crazy expensive for the extended warranty?

[pazuzuindc]

A big box store like that can continue to operate even while bankrupt, though that doesn't mean that some locations won't close and you'll get a glut of newbie employees every 3 months to cut down on paying benefits and raises.

it depends on the type of bankruptcy and if creditors are willing to financially back them while they reorganize (chapter 11). In circuit city's case they will have a hard time finding credit.

If they file it will probably be chapter 7 which is licquidation time.