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Circuit City to liquidate, shut down

updated 12:10 pm EST, Fri January 16, 2009

Circuit City Liquidates

Circuit City today revealed that it has decided to liquidate all its assets and effectively shut down the company. The retailer says the move comes after it was unable to strike a deal with its creditors and other moneylenders to fund the company's business following its move for Chapter 11 bankruptcy in November, which gave it an opportunity to reorganize its business. It also warns that there is unlikely to be enough money left from selling its stores and other resources to pay equity holders.

When Circuit City will sell off its stores isn't mentioned, nor is the outcome of the company's firedog installation service business and its Canadian retail chain The Source.

The company has long been on a decline as it struggled to compete with more successful chains like Best Buy and had briefly tried to use 155 store closures to stave off bankruptcy. Many of its troubles were compounded by poor credit that prevented it from ordering some products and stocking its shelves as well as challengers.



By Electronista Staff
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Comments

  1. Mr. Strat

    Junior Member

    Joined: Jan 2002

    -4

    And the loss is?

    OK, so a bunch of people who know nothing about technology will now be out of a job.

    On the other hand, it's one less incompetant technology vendor. Let them join Future Shop, CompUSA, and their ilk.

  1. Guest

    Fresh-Faced Recruit

    Joined: Nov 1999

    +6

    Probably No Good Sales...

    If you're hoping to get some great "Going Out of Business Sale" deals at your local CC Outlet, you'll probably be disappointed when the stock is sold through a professional liquidation company.

    Oh sure, they'll put up big banners claiming "Fire Sale" clearance prices, but all the good stuff will have been shipped elsewhere or back to the manufacturer. The remnants will be overpriced junk.

    But we can all still hold out hope to find a small gem or two amidst the remaining carcass.

    I wonder who's next in line to shut their doors behind CC?

  1. Guest

    Fresh-Faced Recruit

    Joined: Nov 1999

    0

    They STINK Anyway

    Good RIDDENCE, Circuit City!

    They have ALWAYS been overpriced, and their sales force are wholly incompetent.

    Nuff Said. Don't let the door hit you on the way out.

    I'm SURE the CEO will make off with a tidy sum, though....

  1. eldarkus

    Fresh-Faced Recruit

    Joined: Feb 2004

    0

    I agree

    Good Riddance! I have never liked that store and found the sales staff less than adequate.

  1. danviento

    Fresh-Faced Recruit

    Joined: Dec 2005

    0

    A Gem or Two

    Yeah, I'm hoping that Canon 50D I saw in there last night will cut it's price to 1/3...

  1. WiseWeasel

    Junior Member

    Joined: Apr 1999

    +3

    Say what you will

    Say what you will about the quality of CC's staff or prices, but they are the ONLY retailer in my area to carry certain brands of gear (like ONKYO audio equipment), their prices are not always ridiculous, only on certain items, and the level of equipment they feature in certain categories is head-and-shoulders above Best Buy, and other electronics retailers in my area. They also had a decent selection of computer gear like hard drives and such that was convenient to have nearby. I do most of my shopping online, but it was certainly convenient to have the option of CC's selection nearby, and I will miss it, as I'm just completely unimpressed with Best Buy, and they're pretty much the only competition in my relatively small town.

  1. ScottGG

    Fresh-Faced Recruit

    Joined: Dec 2007

    0

    36 Months Fin

    You better run to the store today before closing because once the LIQ takes over that offer of 36 Months no Interest is GONE!!! Run and get that wicked cool TV today, because NO ONE Offers anything like a 36 month Spread right now.

    Oh, BTW! Their staff is Much better then BestBuy any day. And the Geek Squad at BB, should be called the DIP Squad they're a complete waist of time!

    I'm in South Jersey.

    Scott

  1. vasic

    Fresh-Faced Recruit

    Joined: May 2005

    -1

    Won't notice

    They had several stores in NYC, but I haven't really been there. I often wonder who in their right mind would actually spend all that time going into a brick&mortar store for their electronics? If you're in a city, you'll spend some time battling the crowds; if the suburbs/rural, you actually have to get into a car, drive, seek parking... What a colossal waste of time, only to get higher prices and poorer choices than most reputable online retailers.

    I haven't bought anything in a physical store (and that includes Apple store) in more than 8 years.

  1. itguy05

    Forum Regular

    Joined: Apr 2005

    +1

    Instant gratification

    Why? Let's see here - we bought a 50" Samsung plasma this summer. Looked online and prices were the same as Circuit City. Went to Best Buy, had them price match and got 32-month same as cash financing. Walked out with a TV and was enjoying it shortly afterwards.

    Compare that with the Internet where I'd order, probably pay the same, pay shipping, wait, hope it wasn't broken. Then enjoy my TV and pay about the same.

    No thanks - B&M has some use.

  1. Monde

    Fresh-Faced Recruit

    Joined: Jan 2004

    +2

    Never bought from CC

    Most of these posts nail CC on the head. It is and was just another sub-par tech store, staffed with the poorly informed and poorly paid.

    You could go to see and compare, but beyond that, there was little to commend the CC experience.

    9/10ths of my tech purchases happen online these days. I beat the retail price every time, returns and service are never a problem. There will likely be a lot more closings like this in 2009.

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