Bye, Bye Circuit City

dreamsfloatjoe

dreamsfloatjoe

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:wave: Boys and girls. Better cash in your Circuit City gift cards now. I would not buy an extended warranty service.

Circuit City to Liquidate Remaining US Stores. Circuit City (CC) has reached a deal to be fully liquidated after failing to find a buyer or a refinancing deal.

The electronics retailer reached an agreement with liquidators to sell the merchandise in its 567 domestic stores.

"We are extremely disappointed by this outcome. The company had been in continuous negotiations regarding a going concern transaction,” said James Marcum, vice chairman and acting president and chief executive officer, in a statement.

“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."

People with Circuit City warranties might be out of options.

"If the warranty is from manufacturer, they should be fine," said Jack Gillis, director of public affairs for the Consumer Federation of America. "You will need a proof of purchase, like an original receipt, but if they have a service contract from the company then they may be out luck."

However, the company reported it wasn't changing it Circuit City Advantage Protection Plan. The plans have been backed
by third-party independent companies for more than 15 years and will not be impacted by Circuit City’s liquidation.

News of the liquidation sent shares falling 8% to 3.2 cents each in midday trading on the New York Stock Exchange.

Court papers showed the retailer appointed Great American Group LLC, Hudson Capital Partners LLC, SB Capital Group LLC and Tiger Capital Group LLC as liquidators.

Consumers looking to snag a good deal should proceed with caution.

"In some cases -- and shoppers found this with Linens-N-Things -- [the store] will actually raise prices with certain popular items, so the key is to make sure you know the general price of the item so you know it's a good deal," Gillis said.

Gift cards will continue to be accepted at stores and online.

In November, the Richmond, Va,-based company filed for Chapter 11 bankruptcy protection, falling victim to tight credit markets and slowdown in consumer spending. The judge set today as a deadline to reach a deal with a buyer.

The company received approval to proceed with an auction to sell itself last week. Circuit City told the court it was in talks with two undisclosed parties that could either buy the company or provide financing.

The store said liquidators will start arriving in stores this weekend and closing sales will start as early as Saturday, Jan. 17. Closing sales will run as long as it takes to clear existing inventory, but are expected be over by the end of March.

According to reports, private-equity firm Golden Gate Capital was a leading bidder for the 59-year-old retailer. It made an offer, but requested 30 days to analyze the business, according to reports.

The retailer has been struggling for some time. A week before filing for Chapter 11 bankruptcy protection, it announced it was closing 155 U.S. stores, which will result in the layoff of 17% of its work force.

Reference: FOX Business News Story.
 
Wow, I didn't know this was in.. but I had a feeling it might have been coming.

Sad this is happening. Circuit City's firedog service (their geek squad) was actually a lot more smarter than the Best Buy counterparts. We're talking like Minor league baseball vs jr high school boy's softball team. Now Best Buy's gonna dominate in terms of major retailers for computing goods and probably services as well.
 
Well you know what it means...BIG ASS SALES BREAK OUT! 8D
 
my hometown will going out busniess very soon since Linens 'N Things in my hometown got shut down! months ago but the man who hold signs for LNT stores for months till close and store manager says how much percent will be like 50%-75% or whether percent prices closing sales.

but Circuit City will worth percent at 30% for store closing whether store manager chose it.
 
Steel X said:
Well you know what it means...BIG ASS SALES BREAK OUT! 8D
Click to expand...

i wouldn't buy anything from circuit city even if someone paid me to. since they are going out of business, what happens if you buy one of their products and it stops working after they're no longer in business?
 
Hear Again said:
i wouldn't buy anything from circuit city even if someone paid me to. since they are going out of business, what happens if you buy one of their products and it stops working after they're no longer in business?
Click to expand...

You'd have to acknowledge the risk of doing that. Aside from no instore warranty, all other type of returns you'll have to take it up with the mfg. warranty.
 
Yeah, I have read my news paper that Circuit City will be close for good. Virginia here have Circuit City will be out of business in March. That why so many low price sale.
 
If you buy warranty with CC it is covered by 3rd party. You can still get it fixed or taken care of when they are not having stores around. And liquidation price goes by liquidation company that is taking over. All corporate members were offered 60days pay before they go completely out. Pricing has nothing to do with actual store managers.

Good thing I work for Best Buy :)
 
Well at first...only 10 percent for electronics, 20 percent for DVD/blu ray media. It's too early to get a big dent on a discount. Maybe can wait a bit to get a deeper discount when they increase to 30-40 percent or whatever.
 
i recently bought a new 32" HDTV. when i asked my sister about going to circuit city (because i wasn't aware of the fact that they were closing), she suggested i go to best buy instead, so i did. i'm glad i made that decision because even if i were able to receive a warranty from a 3rd party company, it still doesn't guarantee that they will fix a product if it stops working -- not to mention the possible "runaround" one may receive when trying to contact the company. hence, the reason why i originally stated that i would never buy products from a company who was about to go out of business.
 
Hear Again said:
i recently bought a new 32" HDTV. when i asked my sister about going to circuit city (because i wasn't aware of the fact that they were closing), she suggested i go to best buy instead, so i did. i'm glad i made that decision because even if i were able to receive a warranty from a 3rd party company, it still doesn't guarantee that they will fix a product if it stops working -- not to mention the possible "runaround" one may receive when trying to contact the company. hence, the reason why i originally stated that i would never buy products from a company who was about to go out of business.
Click to expand...

You are a smart cookie. Not because you shop BB, just because you do not trust 3rd party. Who REALLY knows what it is like, right? Its not like we've seen a big electronic business liquidate in a very very long time. Im very curious to see how it goes and what will come in the future. BB is expecting to see decline in business for a couple of weeks. But after that, I cannot wait to see what happens! I really hope it is a lift for us, but I am also sad for the people losing jobs. I know we will be taking some in, because there is a CC.. no joke.. 6 stores down from us in the shopping center that my BB is in.
 
I've went to circuit city today and there werent really alot to buy, so I just bought a dvd that was 20% off. The forbidden Kingdom at least that was a good deal.
 
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