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Bankrupt Circuit City liquidating, closing all stores

Quinton Healy January 16, 2009 1:29 PM ET in Tech

circuit_cityWow, it must be tough being number two in the Electronic retail world.  Circuit City has been in bankruptcy protection since early November 2008 in the hope of working out agreements with creditors and shedding unprofitable stores.

Circuit City secured over 1 billion dollars in credit and closed 155 stores.  Circuit City then went into the holiday selling season with high hopes of a profitable season.  Considering the failure of the Holiday sales figures for just about every retailer, Circuit City’s hopes of a bright and profitable season came to a crashing end today.  Circuit City has requested to liquidate merchandise and close its remaining 567 stores.

While Circuit City claims that this is not necessarily the end of Circuit City, it all but rules out a comeback.  So, in the days when unemployment claims are soaring, Circuit City will send 30,000 more to the street.

“We are extremely disappointed by this outcome,” James Marcum, acting CEO for Circuit City, said in a statement. “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.”

Starting on Saturday, January 17 through March 31 Circuit City will be selling everything, closing stores, and leaving Best Buy on top with no direct competitor.  In my opinion,  this is a blow to competitive pricing. The only competitors are superstores like Wal-Mart, Target, and online retailers such as Amazon and, my favorite, Newegg.

Nice economy, huh?

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51 Comments:

  1. Snarkasm
    The Photographer.
    16 Jan '09, 1:42 pm

    And then there was one...

    I'll be looking forward to hopefully picking up some choice pieces during the liquidation, but I think I'd rather it not go down this way all the same.

  2. AlexDeGruven
    I am Geek. Hear me... type?
    16 Jan '09, 1:45 pm

    Saw that this morning, as well. Looks like their attempts to keep afloat by closing a bunch of stores wasn't enough.

    It's sad to see any retailer go under, but particularly so when it's a larger one like this. Even more so when the path to this end has been pretty well documented (attempted acquisition of Blockbuster, among other things).

    That being said, the last time I was at a big-box technology retailer, I found it very difficult to find anything I really wanted to spend money on. I've been highly addicted to places that are more like MicroCenter, which caters more to the 'I know I want this part, where is it?' crowd than the big-box places, which try to sell you on things.

  3. Quinton Healy
    Guru
    16 Jan '09, 1:47 pm

    Yeah... I remember when Fretter was in business. They handled appliances and electronics. They were a good store... We have Tweeter but they are upper end and not really in the same league as Best Buy. Too bad...

  4. Kwitko
    Sheriff of Dicktown
    16 Jan '09, 2:05 pm

    Be careful when buying during a liquidation. Many times the companies in charge will jack the price, then "discount" it with a flashy sign saying 20% OFF BUY ME NAO!!!! Be a good consumer and check out prices before making a purchase. If the item doesn't move, the liquidators will then discount the item below cost.

  5. Snarkasm
    The Photographer.
    16 Jan '09, 2:06 pm

    Oh of course. I does my research.

  6. RADA
    New Icrontian
    16 Jan '09, 2:10 pm
    Quoting QCH2002

    ...We have Tweeter.....

    ???

    Tweeter filed for bankruptcy in Nov 08. Some stores closed so fast, they didn't even let people pick up stuff they already paid for....

  7. Gnome Queen
    Ms. D
    16 Jan '09, 2:21 pm

    Yea, Tweeter is long gone.

    This is too bad. I have a friend that's employed by Circuit City too. I hope that Best Buy or someone else gets more business and can pick up some of the displaced workers. : /

  8. Quinton Healy
    Guru
    16 Jan '09, 2:24 pm
    Quoting RADA

    ???

    Tweeter filed for bankruptcy in Nov 08. Some stores closed so fast, they didn't even let people pick up stuff they already paid for....

    Really? WOW, didn't know that... Well, that's another electronics store GONE.

  9. Leonardo
    F@H Reign of Terror is back!
    16 Jan '09, 3:15 pm
    I hope that Best Buy or someone else gets more business and can pick up some of the displaced workers.

    I do wish the best for the workers, for workers of any concern that get laid off. As to Worst Buy picking up the slack.... I hate that place, even up here where they are the ONLY electronics store of size. They simply stink when it comes to computer parts prices and selection. I used to buy about a third of my computer-related tech at locally, CompUSA on sale, when they were in business. Our CompUSA, one of the handful of profitable locations, went down with the ship. I did NOT move my business over to Best Buy. For computer components, Best Buy caters to the clueless with fat wallets.

  10. Komete
    DIY Haxx0r
    16 Jan '09, 3:43 pm

    CC's closing has nothing to do with today's economy. The economy just help push it over the edge sooner than later.

    I worked at CC for a month or two some or 6 or 7 years ago. Back then I said to myself this place will eventually close.I've also said the same thing about Ritz camera, the Disney store, Sony Shop, and the Apple store. Personally, I'm not shedding any tears.

    CC just seemed like an over ambitious and claustrophobic TV shop. Then there was the horrible sales culture they pushed on their sales people. Couple that with a dimly lit environment, and you have a recipe for disaster in today's market of, open, big box, shops.

    It tried to change, but all of that was a dollar and a day short. Also, the real changes they did need to make would have been too expensive to make, given the amount of stores they had. Don't get me started on the checkout experience, or locations, or ridiculous parking lots.

    Woa, I said more than I meant to. Just I got such a bad impression working there all those years ago, I guess I needed to vent. lol

  11. Zuntar
    Modder extraordinaire
    16 Jan '09, 4:50 pm

    Leonardo said it all.

  12. primesuspect
    The Icrontic Guy
    16 Jan '09, 5:13 pm

    Hey Alex Welcome to Icrontic!

  13. UPSLynx
    The Dean of Computer Graphics
    16 Jan '09, 6:10 pm

    I liked Circuit City...

    Not that it was a choice place for buying electronics. It was still too expensive with bad selection of product, but when it came down to it, I went to CC before I touched Best Buy.

    Hate BB so much....

    I bought my 22in display at CC. They had a great selection, competitive prices, ect. I'd never buy a display online. I'm the type that needs to look at it and trust the transport it safe. CC was a good store for something like that.

    Guess I won't miss it, I saw this coming as well. I'll just keep buying online as I have before...

  14. Tim
    Pessimistic Optimist
    16 Jan '09, 8:33 pm

    Best Buy's Geek Squad is one of the biggest rip-offs I have ever seen. I've walked into BB stores, and gone to the GS and played dumb, asking questions, etc, to see what they charged for work compared to what I charge. They were about 60% higher than me.

    Once I was looking for a stick of DDR2 ram for someone's computer. Geek Squad sold it for $120, I went to Staples and bought the SAME stick for $50.

  15. fatcat
    sasquatch wannabe
    16 Jan '09, 8:40 pm

    All we got is Best Buy and Staples.

    Office Depot went under here last month.

  16. Kwitko
    Sheriff of Dicktown
    16 Jan '09, 9:15 pm

    OMG. I feel so bad for the sales guy I met a CC the other day. He used to work on Wall Street, his company laid off everybody, he couldn't find another job on the trading floor, so went to CC because he had to pay the bills. Now he's going to lose 2 jobs in a year's time.

  17. AlexDeGruven
    I am Geek. Hear me... type?
    16 Jan '09, 9:28 pm
    Quoting primesuspect

    Hey Alex Welcome to Icrontic!

    Shanks... I thought about putting you as my reference when I registered, but it was too late by the time I realized it.

  18. DrLiam
    FoxtoN
    17 Jan '09, 3:17 am

    In Canada, CC bought up Radio Shack and all their locations. Radio Shack was an old school tech company that sold odds and ends for TVs, electrical work and anything else that had an once of technology related material. Once CC took over they got rid of all the bits and pieces and try selling only TVs, Video Games, and any "big box" item. At that point I knew CC was going under.

    In the West Coast we have Future Shop, a company that is now owned by BB but sells all it's products for cheaper!!!

    So we got some fake competition going on between Best Buy and Future Shop even though they are owned by the same company... o_O

    Anyways, Circuit City, you suck. You bought out Radio Shack, took away everything that made them good and tried to compete with a company twice as big as you. Silly Americans.

    P.S.- I <3 America... but seriously... silly.

  19. cambrose
    The Crack is BAK!!!
    17 Jan '09, 8:49 am

    We can all feel pity for them, but it's people like us who are causing this to happen. With the advent of newegg, amazon, and websites like fatwallet.com, we are all saving tons of money doing purchases online. The downfall to this whole thing is that while we are doing this we are driving business out for a lot of B&M stores. These numbers will get worse as time goes on as more and more of the consumer base expands their online shopping habits. The only B&M computer store I frequent at all now is Microcenter and that is because their prices are competitive to Newegg, so I can go get a quick replacement part in case of emergency.

  20. GnomeWizardd
    <3 IC
    17 Jan '09, 9:50 am

    Newegg and thats it Id go to CC on the days blue rays were released and get them for 20 bucks sometimes, but other than that, Newegg amazon....... Closet microcenter is in phili bah

  21. Zuntar
    Modder extraordinaire
    17 Jan '09, 12:51 pm

    CC had nothing that target, walmart, staples, HHgregg, Best buy etc. doesn't have. Won't miss.

  22. Leonardo
    F@H Reign of Terror is back!
    17 Jan '09, 2:50 pm

    Cambrose, a well-organized and managed brick and mortar retail operation can still compete with online vendors. There is still a huge market segment that desires to see the product on a shelf and touch it before purchasing. Although the physical stores do have a disadvantage with overhead costs, they have the advantage of engaging the local community.

    CompUSA is an example. CompUSA did not go out of business because of online competition, they collapsed due to gross mismanagement at the corporate level. Their sales and rebates campaigns were not well coordinated, their centralized inventory tracking was chaos, bulk orders at corporate level were haphazard, et cetera. Incompetent leadership killed CompUSA, not the TigerDirects, Directrons, or Newegg.

    Circuit City? I don't have much of a perspective on them. It's been about six years since I've been in one. I just remember that it seemed like a good place to buy TVs and other 'big' items, but was somewhat limited in computer components. To me, it seemed like just a large Best Buy without all the noise and throngs of teenagers. Hmm, I'm starting to remember more now - mainly clueless sales clerks.

  23. airbornflght
    McLovin
    17 Jan '09, 5:01 pm

    We bought our new tv and hts at CC. Too bad cause I got a really good deal on it.

    But yeh, it's not the internet's fault that they collapsed. And even if it was it is only the free market at work. I will never pay more for a product than I have to. I will go to the most cost efficient place possible. CC was operating on an old management paradigm

  24. Gnome Queen
    Ms. D
    17 Jan '09, 5:33 pm
    Quoting Leonardo

    CompUSA is an example. CompUSA did not go out of business because of online competition, they collapsed due to gross mismanagement at the corporate level. Their sales and rebates campaigns were not well coordinated, their centralized inventory tracking was chaos, bulk orders at corporate level were haphazard, et cetera. Incompetent leadership killed CompUSA, not the TigerDirects, Directrons, or Newegg.

    This confuses me. CompUSA is, to my knowledge, still very much in business- and I do believe that they recently bought Tigerdirect. I know for a fact that they own the TigerDirect store near me.

  25. Komete
    DIY Haxx0r
    17 Jan '09, 5:37 pm
    Quoting Gnome Queen

    This confuses me. CompUSA is, to my knowledge, still very much in business- and I do believe that they recently bought Tigerdirect. I know for a fact that they own the TigerDirect store near me.

    It's the other way around. Tiger Direct bought some Compusa stores and I think the rights to the corporate name. What was compusa is gone. Tiger Direct now runs it.

  26. Thrax
    Cad
    17 Jan '09, 5:38 pm

    ^ Correct.

  27. Leonardo
    F@H Reign of Terror is back!
    17 Jan '09, 5:44 pm

    CompUSA started as a chain of stores in the 90's. It eventually became a huge business with several hundred stores in all medium and major cities. Later CompUSA added an online sales component for business and consumers. In late 2007 CompUSA's then new owner gave up on keeping the giant afloat. Finding no one interested in keeping the business running, he sold the stores, warehouses, and inventory to a liquidator. Except for four or five stores, the entire physical component of the business was liquidated and the stores were closed permanently. The CompUSA name and online business was sold to a new owner.

    There were a number of profitable CompUSA stores, but unfortunately most of them were gutted and liquidated along with the rotten stores.

  28. Gnome Queen
    Ms. D
    17 Jan '09, 5:45 pm

    Oh. My bad then. I wonder why then all the computers in the Tiger Direct store take you to the compUSA site and not to the Tiger Direct site....Strange.

  29. GnomeWizardd
    <3 IC
    17 Jan '09, 5:45 pm

    I know this, I worked at CC

    Management blew, Unorganized and untrained, Sales people were generally a joke, Stock well maybe we could check it if our computer system wasn't from 1970, The only thing CC ever wanted us to do was sell them what they wanted to hear and then sell them a crappy CC plan to " back it up "

    Here u go sir your 9 dollar flash drive by the way would u like to spend an extra 15 bucks for the 2 year warranty? THAT right there sent people out the door

  30. Snarkasm
    The Photographer.
    17 Jan '09, 5:46 pm

    There are only something like 30-40 actual CompUSA stores left, they're primarily down in Florida now.

    I went to check out the liquidation sales today and lolled my way right back out of the stores. TB hard drive for $170, MX Revolution for $105, Blu-Ray for 20% off of $30-35. I'll check next week when they're more desperate.

  31. Komete
    DIY Haxx0r
    17 Jan '09, 5:48 pm

    They called it cheese at my store. You get cheese on that? How sick is that? They wouldn't even pretend to have the customers best interest in mind. I worked and ran other retail stares before, but I just felt like a sleeze ball there.

    Quoting GnomeWizardd

    I know this, I worked at CC

    Management blew, Unorganized and untrained, Sales people were generally a joke, Stock well maybe we could check it if our computer system wasn't from 1970, The only thing CC ever wanted us to do was sell them what they wanted to hear and then sell them a crappy CC plan to " back it up "

    Here u go sir your 9 dollar flash drive by the way would u like to spend an extra 15 bucks for the 2 year warranty? THAT right there sent people out the door

  32. GnomeWizardd
    <3 IC
    17 Jan '09, 5:50 pm

    well thankfully all i did was work for fire dog as a tech not sales, I always did extra things for free since i felt like they were getting ripped for a 180 dollar virus removal!

  33. Leonardo
    F@H Reign of Terror is back!
    17 Jan '09, 5:52 pm
    There are only something like 30-40 actual CompUSA stores left, they're primarily down in Florida now.

    And so, you are right. I wish one would open (re-open) up here. Any well-managed tech store of that type, like Microcenter or Fry's, would be an overnight success up here. Their only competition would be the office stores and Worst Buy, the latter attracting the clueless but not the computer hardware enthusiasts.

  34. GnomeWizardd
    <3 IC
    17 Jan '09, 5:52 pm

    oh and yea it was called gravy down in Fl, It was really sad Best buy was no different when i was at Geek squad. I only worked there for discounts but honestly most discounts there i can buy for the same price on the Egg

  35. Leonardo
    F@H Reign of Terror is back!
    17 Jan '09, 5:56 pm

    Systemax own Tiger Direct. In January 2008 Systemax bought the CompUSA name, CompUSA online business, and the few hard assets that weren't liquidated.

  36. GnomeWizardd
    <3 IC
    17 Jan '09, 5:57 pm
    Quoting Leonardo

    And so, you are right. I wish one would open (re-open) up here. Any well-managed tech store of that type, like Microcenter or Fry's, would be an overnight success up here. Their only competition would be the office stores and Worst Buy, the latter attracting the clueless but not the computer hardware enthusiasts.

    ur telling me now with cc gone there is only a walmart and staples unless i travel 40 min to BB I want a microcenter!

  37. Komete
    DIY Haxx0r
    17 Jan '09, 5:58 pm

    The EGG rules, long live the EGG.

  38. GnomeWizardd
    <3 IC
    17 Jan '09, 5:59 pm
    Quoting Leonardo

    Systemax own Tiger Direct. In January 2008 Systemax bought the CompUSA name, CompUSA online business, and the few hard assets that weren't liquidated.

    this would be a prime time for Compusa to make a new and improved comeback since there would be plenty of open store fronts at cheap prices. Pick and choose which ones were profitable from CC

  39. Komete
    DIY Haxx0r
    17 Jan '09, 6:02 pm

    I guess you guys have sucky BB around you. They are actually really great where I live. THey don't bother me, and give me good advise on stuff if I ask. I actually had someone talk me out of buying a camera because they were about to go on sale if I waited for a week.

  40. Leonardo
    F@H Reign of Terror is back!
    17 Jan '09, 6:02 pm

    Except for horrendous shipping charges if you live outside of the Lower 48. Their FEDEX express rates just went up almost 50% for me. When shipping is factored in, I can now find the same products at other vendors for much less. As for site navigation, service, and selection though, Newegg is tops.

  41. Komete
    DIY Haxx0r
    17 Jan '09, 6:06 pm

    F it, Icrontic should by a closed CC and reopen it. I know you guys are making crazy mad money in advertisements.

  42. Leonardo
    F@H Reign of Terror is back!
    17 Jan '09, 6:08 pm
    I guess you guys have sucky BB around you. They are actually really great where I live. THey don't bother me, and give me good advise on stuff if I ask.

    My main complaint with BBs - all that I've been in - is very poor selection of computer components and terrible prices. I don't know about their other electronic items. I haven't shopped for tech other computer stuff for several years. One exception to my BB experience was the Rocketfish (Lian Li with a different badge) that I purchased a year ago. BB actually had a top of the line computer product, but because their customers only knew three brand names (two being Dell and HP), the Lian Li/Rocketfish cases just gathered dust. Then forums like ours found out about them.

  43. Komete
    DIY Haxx0r
    17 Jan '09, 6:13 pm
    Quoting Leonardo

    My main complaint with BBs - all that I've been in - is very poor selection of computer components and terrible prices.

    Yea, that is practically non existing. Don't get me started on them not having a SATA cable in the whole dang store. The prices on PC stuff is outrageous too. Video cards sell for 100 more than what you could get online. But for electronics, not sure on price, they do have a good selection. If you can catch an item on sale you can make out pretty good. I got my 24inch LCD from them for less than the egg was charging.

  44. coder2000
    Guest
    18 Jan '09, 11:31 am

    In Canada BB doesn't sell alot of computer components. If you want a nice Toshiba laptop or HP computer sure but nothing smaller unless its more than the parts store down the street. Don't get me wrong, I like BB, I got my camera there, but there are some things they shouldn't be selling. For you guys in the US you should look at ncixus.com for some competition to newegg. They might be cheaper being from Canada.

  45. leishi85
    JUMP JUMP JUMP
    19 Jan '09, 12:34 am

    went to circuit city today to check out if there are anything worth buying. Walked around for couple minutes, nothing worth buying at all.

  46. Miltownstaydown
    Her Fingers, Like Spiders
    27 Jan '09, 10:08 am
    Quoting Leonardo

    I do wish the best for the workers, for workers of any concern that get laid off. As to Worst Buy picking up the slack.... I hate that place, even up here where they are the ONLY electronics store of size. They simply stink when it comes to computer parts prices and selection. I used to buy about a third of my computer-related tech at locally, CompUSA on sale, when they were in business. Our CompUSA, one of the handful of profitable locations, went down with the ship. I did NOT move my business over to Best Buy. For computer components, Best Buy caters to the clueless with fat wallets.

    QFT. I've seen so many clueless people in "Worst Buy" spending money on parts that you could get for wayyyy cheaper..

  47. Quinton Healy
    Guru
    27 Jan '09, 1:30 pm

    I worked at BB and can attest to the "up sell" and that is why my part-time employment was not worth selling my soul for ...

  48. Thrax
    Cad
    27 Jan '09, 3:42 pm

    I worked for BB (two different stores) and was explicitly advised to sell only what the customer needed.

  49. AlexDeGruven
    I am Geek. Hear me... type?
    27 Jan '09, 4:18 pm

    It seems that a good plan right now for the liquidation is to hold out for at least a week or so before attempting to pick anything up.

    Seeing reports (I'll see if I can find the camera shot) where the liquidators marked out the normal 'sale' price (the regular price they sell it at), leaving the 'regular' price (the marked up price that makes it look like you're getting a deal) visible, and then marking down 10-15% off of that. In most cases, the 'sale' price is about 20-30% lower, so you can see where I'm going with this.

    Edit: Found it
    http://www.structuredthought.org/ima...kemarkdown.jpg

  50. MAGIC
    NFNF
    27 Jan '09, 4:52 pm

    Yah, i went and didnt see anything very exciting.

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