# Circuit City Files for Bankruptcy



## Nick (Apr 23, 2002)

*Circuit City seeks bankruptcy protection, "plans to continue operating...without interruption"

721 stores in US, 770 in Canada
*


> *Bloomberg.com*
> 
> By Tiffany Kary and Mark Clothier
> 
> ...


More @ Bloomberg.com


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## Stuart Sweet (Jun 19, 2006)

I'm moving this to Tech Talk where the previous CC thread is.


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## Richard King (Mar 25, 2002)

This is not good. CC was born in the same city that I was born in. CC was also born in the same year as I was born. I hope I can avoid BK (not Burger King)


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## Draconis (Mar 16, 2007)

Another article about Circuit City's bankruptcy.

Circuit City Files for Chapter 11 Bankruptcy


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## Stuart Sweet (Jun 19, 2006)

Worth pointing out for those who don't read the link, Chapter 11 is what you file for when you think you have a shot of making it. CC thinks they can stay afloat here. Personally I'm not sure.


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## DtvSlave (Nov 14, 2007)

I guess all those "Firedog" sub-contractors they have been screwing out of pay all this time can forget about seeing any money now.

By having owed (and defaulting) on all that HP and Samsung money, i guess you won't see much of their products in the store anymore, unless they contract on a cash bases for now on.


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## f1fan1963 (Aug 31, 2007)

Our CC is about a mile from BB. CC's parking lot is always empty, while BB is full. Personally I don't know how they've stuck around this long. At least in our city.


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## Richard King (Mar 25, 2002)

f1fan1963 said:


> Our CC is about a mile from BB. CC's parking lot is always empty, while BB is full. Personally I don't know how they've stuck around this long. At least in our city.


Your situation is much like the situation here, other than the fact that the CC here IS closing.


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## Ken S (Feb 13, 2007)

Unless they begin to fix their stores, training and district management it won't matter. They suffer from the same poor management and implementation that killed CompUSA.


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## dave29 (Feb 18, 2007)

Richard King said:


> Your situation is much like the situation here, other than the fact that the CC here IS closing.


there are 3 CC's and 3 BB's all in about 16-20 miles of each other here and all of the BB's are always packed and the CC's are always empty. i have wondered too, how they have made it this long.......


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## MikeW (May 16, 2002)

By the end of January, there will be two in the state of Arizona. I don't understand how it could be beneficial to them to continue having distribution to the two stores in Tucson with nothing to serve in Phoenix. Maybe these two stores will be the dumping ground for the Phoenix stuff and they'll shutter these stores in the next round.

Remember, K-Mart did the BK thing back in '04 and they still have many stores open today.


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## spartanstew (Nov 16, 2005)

MikeW said:


> Remember, K-Mart did the BK thing back in '04 and they still have many stores open today.


But not as many as they did. There's none in Dallas anymore.


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## Fontano (Feb 7, 2008)

In my area.

There are 2 CCs within a 45 minute drive in any direction.
They closed 3 CC's over the last two years.

In that same 45 minutes, you can hit at least 8 BestBuy's
Including a relatively new one that is massive in size.

One of the CCs is about .5 mile from a BestBuy.
However, the strip mall that the CC is in, has been under MASSIVE construction this year (WalMart is expanding/moving). And is away from all the other main stores. Plus their parking lot is the type just asking for an accident to happen.

I was actually very surprised to see that it WASN'T on the list ones scheduled to close.


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## Mavrick (Feb 1, 2006)

MikeW said:


> Remember, K-Mart did the BK thing back in '04 and they still have many stores open today.


And they have since bought Sears also


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## Stuart Sweet (Jun 19, 2006)

Fontano said:


> In my area.
> 
> There are 2 CCs within a 45 minute drive in any direction.
> They closed 3 CC's over the last two years.
> ...


As I've said before, the decision on what to close has to have been made on the basis of revenue, not service or the attractiveness of the store. I visited two CCs this weekend, one still with fresh paint on the stripes in the parking lot. Both are closing while a third, located in between them is staying open. The store that remains was built in 1997 and is in a rapidly decaying strip center in a fairly sketchy area.

If this is the sort of decision-making that Circuit City expects to take them through bankruptcy and back to profitability, all I can do is wish them good luck (while I shop at Best Buy.)


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## Steve Mehs (Mar 21, 2002)

I think Circuit City will be around for a while, in the same sense that KMart is still around. It's there, not nearly as many locations as there once was, not as many shoppers as there once was, a limited product selection compared to it's competitors, with lower end offerings. It will continue to limp along for a while.


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## James Long (Apr 17, 2003)

Just another in a long line of electronics retailers that were big and are now gone.
I just hope someone can fill their stores so we don't have big box eyesores.

It looks like they pulled the closing stores off of their website store locator. My closest store will be 11 miles away with the next closest 46 miles. Six more stores will be within 50-100 miles away. I can't even remember the store they are closing near me existing.

I worked for one department store that went through financial problems and closed stores back in the early 90s. We were the number 2 store in sales in the nation but were closed because the brilliant minds at the top decided to close everything in the state. The worst part was that we were one of the few stores in the state ... targeted operations in medium size communities where the company could make money with their style of marketing. The company decided to expand into larger communities by buying a successful chain that had stores in bigger cities (including the Chicago suburbs) and building more stores that diluted the sales of the existing ones. Even after all of this expansion we remained number 2 ... until the day we were closed. And now the next chain store moved into the vacant shells. Progress. Some stores die and others cycle in.

For their own sake (and employees) I hope Circuit City figures out who they are, who they are marketing to and focuses on that market to stay alive. Otherwise they are just postponing the end.


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## Cholly (Mar 22, 2004)

The list of creditors on Bloomberg is impressive. Small wonder they've gone Chapter 11.
I wonder how secure my extended warranty on my 55 inch Sony RP LCD TV is. It has a year to go, and I was planning to make use of it to replace the bulb when the "replace bulb" light goes on.


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## Nick (Apr 23, 2002)

Good luck on the warranty, Cholly.

As an aside, I just sold my five-year old 53" Panny RPTV exactly five years to the day after I bought it and got $500 cash for it. I originally paid $1169 for it on sale and saved $400 on the purchase by not taking the 5-year warranty deal. That's one time I gambled and won! 
We now return you to the original topic, the CC bankruptcy. :backtotop


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## bidger (Nov 19, 2005)

Steve Mehs said:


> I think Circuit City will be around for a while, in the same sense that KMart is still around. It's there, not nearly as many locations as there once was, not as many shoppers as there once was, a limited product selection compared to it's competitors, with lower end offerings. It will continue to limp along for a while.


If the quality of their Electronic items will be "lower end", how will CC differentiate itself from WalMart? If I can get a higher end Panny, Sammy, or SONY from BB, why would I go to CC? And K-Mart offers basic living supplies as well as Electronics, CC doesn't. Basically, they offer nothing that I can't live without.


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## Steve Mehs (Mar 21, 2002)

While Best Buy certainly is no high end A/V shop, I see a lot more higher end products at Best Buy then I do Circuit City and a wider variety. Especially when talking about Best Buy's Magnolia gimmick. And while I would never buy a computer at a retail outlet, as they all suck since they no longer offer CTO systems, when looking at the laptop and almost nonexistant ddesktop displays at Circuit City, Best Buy usually has them beat in features and price.


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## Richard King (Mar 25, 2002)

I just don't get it. Here's a Google Earth shot of both the local Best Buy and CC stores here in Vero Beach. CC is a stand alone store right on the main drag between I-95 and Vero. BB is "just around the corner" in a strip mall. Both are adjacent to the main mall in Vero, as can be seen. Notice the parking area in front of the two stores. CC is probably full of more employees than customers. BB has many more cars in front of it, along with the employee cars a bit further from the front doors. This was shot on July 8, 2005. I don't know what time.


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## Stuart Sweet (Jun 19, 2006)

One thing that's clear, the Best Buy is much bigger than the Circuit City.


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## Richard King (Mar 25, 2002)

Stuart Sweet said:


> One thing that's clear, the Best Buy is much bigger than the Circuit City.


Actually, it's not. BB only has a portion of the building that I marked. I'll edit and put a line around the approx walls of the BB.


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## Christopher Gould (Jan 14, 2007)

Cholly said:


> The list of creditors on Bloomberg is impressive. Small wonder they've gone Chapter 11.
> I wonder how secure my extended warranty on my 55 inch Sony RP LCD TV is. It has a year to go, and I was planning to make use of it to replace the bulb when the "replace bulb" light goes on.


there is a press release with FAQ on the bankrupty and it says warranties are cover buy a third party.

http://files.shareholder.com/downlo...7745C9AA-23D9-427E-A563-4D10651F5344/111008 Q


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## Richard King (Mar 25, 2002)

BB outline added. I think CC actually has more square feet and is certainly less cluttered.


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## TheRatPatrol (Oct 1, 2003)

f1fan1963 said:


> Our CC is about a mile from BB. CC's parking lot is always empty, while BB is full. Personally I don't know how they've stuck around this long. At least in our city.


Same, except here they are across the street from each other.



MikeW said:


> By the end of January, there will be two in the state of Arizona. I don't understand how it could be beneficial to them to continue having distribution to the two stores in Tucson with nothing to serve in Phoenix. Maybe these two stores will be the dumping ground for the Phoenix stuff and they'll shutter these stores in the next round.
> 
> Remember, K-Mart did the BK thing back in '04 and they still have many stores open today.


I agree, I don't know why they just don't keep 1 store opened in each city.


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## Hansen (Jan 1, 2006)

While I did not frequent 
CC for most purchases, the good thing it did do was provide competition to BB which in turn meant that BB kept prices low or matched CC's price and aimed to better CC by stocking better products.


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## James Long (Apr 17, 2003)

There is a trade off in store placements. We're about to get another WalMart Supercenter replacing an old store that closes at night even though there are two other Supercenters within five miles each direction. The goal is to be the most convenient for the price. I might drive past one Supercenter to get to another 24/7 store of the same size, but I feel odd driving past the second when the competing stores really are not that much different.

How many Best Buys would you drive past to get to a Circuit City? If the Circuit City was closer to your home would you go there first or more often? CC might be able to split a city with a competitor by being on the other side of town instead of head to head.

There is a lot to think of when deciding which store to close.


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## Richard King (Mar 25, 2002)

Circuit City Listing Suspended; First-Day Motions Approved


> After threatening to do so last week, the New York Stock Exchange formerly moved towards delisting Circuit City's stock Monday. The move came the same day the troubled CE retailer filed for Chapter 11 bankruptcy protection.


More....


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## Stuart Sweet (Jun 19, 2006)

My understanding is this option came because their stock was trading under $1.00 for over a month.


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## dddeeds (Sep 16, 2007)

Christopher Gould said:


> there is a press release with FAQ on the bankrupty and it says warranties are cover buy a third party.
> 
> http://files.shareholder.com/downlo...7745C9AA-23D9-427E-A563-4D10651F5344/111008 Q


Unfortunately my Ext. Warranty is probably underwritten by AIG or GM Financial :eek2:


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## Richard King (Mar 25, 2002)

http://www.dealerscope.com/article/...-28-percent-circuit-citys-stock-400697_1.html


> A Mexican media mogul has purchased a larger stake of Circuit City and now owns around 28 percent of the struggling retailer.
> 
> According to Bloomberg News, which cited a Securities and Exchange Commission filing, Ricardo Salinas Pliego, who owns the TV broadcasting company TV Azteca and mobile phone firm Grupo Iusacell SA, purchased 5.3 million shares in one day earlier this month and 25 million more later that week. Salinas Pliego paid between 24 and 26 cents per share, Bloomberg said.
> 
> The company declared Chapter 11 bankruptcy earlier this month.


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## phrelin (Jan 18, 2007)

> According to Bloomberg News, which cited a Securities and Exchange Commission filing, Ricardo Salinas Pliego, who owns the TV broadcasting company TV Azteca and mobile phone firm Grupo Iusacell SA, purchased 5.3 million shares in one day earlier this month and 25 million more later that week. Salinas Pliego paid between 24 and 26 cents per share, Bloomberg said.


What does he know that I don't? Hey, it closed a 23 cents today. If I invested $23.00 would I make a bundle in two years?


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## Richard King (Mar 25, 2002)

I don't know what he knows that we don't, but this would be a chance to get in for a real bargain basement sale if the thing ever comes back. With him in there owning a large percentage of the outstanding stock it could be that he will fight for the equity holders in the bankruptcy process. Typically when a company gets in this position the shareholders lose everything and the stock gets written off the books. He may be able to stop that from happening (maybe). It's a real gamble though.


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## hdtvfan0001 (Jul 28, 2004)

Richard King said:


> I don't know what he knows that we don't, but this would be a chance to get in for a real bargain basement sale if the thing ever comes back. With him in there owning a large percentage of the outstanding stock it could be that he will fight for the equity holders in the bankruptcy process. Typically when a company gets in this position the shareholders lose everything and the stock gets written off the books. He may be able to stop that from happening (maybe). It's a real gamble though.


99 out 100 of those speculative "get rich" purchases end up losing money.


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## xIsamuTM (Jul 8, 2008)

all businesses eventually close. One day there we will see the last Altoid come off the production floor.


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## Stuart Sweet (Jun 19, 2006)

...and it will be stolen by the last cockroach or eaten by Cher :lol:


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## hdtvfan0001 (Jul 28, 2004)

Stuart Sweet said:


> ...and it will be stolen by the last cockroach or eaten by Cher :lol:


!rolling !rolling !rolling


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## Draconis (Mar 16, 2007)

xIsamuTM said:



> all businesses eventually close. One day there we will see the last Altoid come off the production floor.





Stuart Sweet said:


> ...and it will be stolen by the last cockroach or eaten by Cher :lol:


:eek2:

!rolling


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## Richard King (Mar 25, 2002)

http://www.dealerscope.com/article/...million-electronics-merchandise-400878_1.html
Samsung to Circuit City: Give Us Back Our Product


> Samsung's American division is demanding that Circuit City return $74 million worth of electronics merchandise, on the grounds that the retailer, which is in Chapter 11 bankruptcy, knew it was insolvent at the time of the deal.


More.


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## Steve615 (Feb 5, 2006)

CC is now running local TV ads in our area,claiming to take 30-60% off of everything left in their stores.


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## puckwithahalo (Sep 3, 2007)

Stuart Sweet said:


> ...and it will be stolen by the last cockroach or eaten by Cher :lol:


She may have to fight Dick Clark for it.


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## BattleZone (Nov 13, 2007)

Richard King said:


> BB outline added. I think CC actually has more square feet and is certainly less cluttered.


One thing I always notice is this: BestBuy parking lots are huge and open. They are easy to get in and out of from multiple locations, and free of parking stops in the spaces or islands at the ends.

Circuit City parking lots are like mazes. You have to twist and turn all around to get in and out, and there are lots of islands and walls to avoid.

I purposely avoid shopping or going to any store of any kind that has a "maze" parking lot. I'll never understand why some people thing they are such a great idea, but virtually every Circuit City lot is that way.

Maybe I'm not the only one who feels that way.


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## bidger (Nov 19, 2005)

Steve615 said:


> CC is now running local TV ads in our area,claiming to take 30-60% off of everything left in their stores.


I believe that coincides with the "xx Days Left Before Closing" signs you should see in the stores. They want to close a few days before Christmas Eve. Maybe you'll find a deal from what's not already picked over...maybe.


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## Steve615 (Feb 5, 2006)

bidger said:


> I believe that coincides with the "xx Days Left Before Closing" signs you should see in the stores. They want to close a few days before Christmas Eve. Maybe you'll find a deal from what's not already picked over...maybe.


Agreed.But,the store that is "near" us is 50-60 miles away,so we don't get by there very often.
I imagine the Nashville area locations that are closing are pretty much "cleaned out" by now anyway.


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## Richard King (Mar 25, 2002)

http://www.dealerscope.com/article/...t-workforce-slow-store-openings-401175_1.html
Best Buy Earnings Plunge


> Best Buy announced Tuesday that its net income in the third quarter plunged 77 percent, from $228 million last year to $52 million. The company said it has taken a $111 million impairment charge related to its purchase of the Carphone Warehouse Group.


 MOre.


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## Richard King (Mar 25, 2002)

http://www.cepro.com/article/tweete...to_come?utm_source=CEPWeekly&utm_medium=email
Tweeter Stores to Remain Closed, Warehouse Sale to Come
Company has 15 days to remove all products and property from all stores


> It appears that Tweeter stores will not reopen after all.
> 
> Tweeter, which was granted Chapter 11 bankruptcy in 2007 and sold to liquidators, abruptly closed all its stores on Dec. 2 because it was unable to access operating funds from its lender. This happened before liquidation was complete.
> 
> ...


More...


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