Lega_c Posted January 16, 2009 Share Posted January 16, 2009 Source ATLANTA (Reuters) - Bankrupt retailer Circuit City Stores said Friday it will liquidate its assets after it failed to reach a deal with creditors and lenders regarding a potential sale of the company. Circuit City, the second-largest U.S. specialty electronics retailer, was due to present the results of an auction for its assets at a hearing in U.S. Bankruptcy Court in Richmond, Virginia, on Friday. It had conducted negotiations with potential bidders to sell the company, but had advised that liquidation was possible if no deal was reached. "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 ... and so this is the only possible path for our company," Vice Chairman James Marcum said in a statement. Shares of the chain fell 68 percent to 5 cents. Circuit City filed for Chapter 11 protection in November, citing a deteriorating cash position and tighter terms from vendors. It has liquidated and closed 155 stores, and now has about 567 U.S. stores. It has struggled behind Best Buy Inc and faced heightened competition from other store chains, such as discounter Wal-Mart Stores Inc. Best Buy shares rose 1.5 percent on Friday after the Circuit City announcement. The specialty chain is the biggest retailer to fall so far as rising unemployment and tighter credit lead consumers to halt spending and spur retail failures. Restructuring experts are expecting a wave of store closures and potential bankruptcies as the soft economy continues to pressure business. Last week, the retailer received bankruptcy court approval to proceed with an auction to sell the company. At the time, Circuit City said it was in talks with two undisclosed parties that could either buy the company or provide additional financing. Circuit City was founded in 1949 when Samuel Wurtzel opened Ward's, Richmond's first retail television store. (Reporting by Karen Jacobs, editing by Dave Zimmerman) Well at least there will be a hell of a lot of cheap games and electronics. R.I.P CC Link to comment Share on other sites More sharing options...
deathdealer Posted January 16, 2009 Share Posted January 16, 2009 I'm not surprised really. I went to a CC store in my neighborhood and there were ps3 and 360 games, that came out in 2006, that were still $60. Link to comment Share on other sites More sharing options...
Titanfan Posted January 16, 2009 Share Posted January 16, 2009 Wow that sucks. Two of my friends work for circut city. Link to comment Share on other sites More sharing options...
trip Posted January 16, 2009 Share Posted January 16, 2009 as long as my technophile wife doesnt find out i dont want to brag but i happened to be married to a chick that loves highend stereo equipment and tvs...oh and our highend tv is because of her love of football and hockey. don't get the wrong idea - you would never know by looking at her. My crappy games at MyCrappyGames.com Free copy of Save The Puppies and Kittens Link to comment Share on other sites More sharing options...
HolyGrenadeFrenzy Posted January 16, 2009 Share Posted January 16, 2009 I have been waiting to here from their people for quite awhile....still waiting on the pihone now...call it last minute shopping. The BS about being able to return things is outdated on the recording....not funny. Order anytime @ 1-888-244-6594 Circuit City No Hassle Returns....Yeah, right....if the store is not open, I call that a hassle! Link to comment Share on other sites More sharing options...
Mark Posted January 16, 2009 Share Posted January 16, 2009 Hah, not a surprise. Who was seriously going to buy out a an electrical retailer whilst on the verge of a recession, not to mention in an industry suffering heavily from competition from internet retail. I was pretty much waiting for the announcement of liquidation. Link to comment Share on other sites More sharing options...
Mainland Marauder Posted January 16, 2009 Share Posted January 16, 2009 Hah, not a surprise. Who was seriously going to buy out a an electrical retailer whilst on the verge of a recession, not to mention in an industry suffering heavily from competition from internet retail. I was pretty much waiting for the announcement of liquidation. This. It sucks for the people who still work there, but most of the CC stores around my parts were liquidating their stock around September, unfortunately, that was around the time I started being really broke. Definitely wasn't the only one because layoffs were happening left and right. Even before the economy went bad, CC was an also-ran in the big-box electronic retailer pack. I generally preferred Fry's or Best Buy anyway. "You tell me exactly what you want, and I'll explain to you very carefully why it cannot be." Link to comment Share on other sites More sharing options...
gta_player5 Posted January 16, 2009 Share Posted January 16, 2009 Even before the economy went bad, CC was an also-ran in the big-box electronic retailer pack. I generally preferred Fry's or Best Buy anyway. I've always liked Best Buy more than Circuit City. I noticed that they always seemed to have a larger variety and selection and that their staff was more knowledgeable if you had any questions. Link to comment Share on other sites More sharing options...
Capricornus Posted January 16, 2009 Share Posted January 16, 2009 Bleh, I am not surpised a this at all. Even more so, I wasn't surrised when the filed for Bankruptcy a few months back. You also have to think about the fact that you have other electronic giants such as Best Buy and Wal Mart. Well, Wal Mart is sort of electronics, but nor overall. Anyway you get what I am saying. I am more of a Best Buy guy anyways. Farwell CC. Link to comment Share on other sites More sharing options...
Tetsuo2501 Posted January 16, 2009 Share Posted January 16, 2009 here in Texas CC stores have already been closing down for months, and bulldozed/bought out to other companies. I went to their site once I read this, I wonder if their going to list out their liquidation prices. Link to comment Share on other sites More sharing options...
Mainland Marauder Posted January 16, 2009 Share Posted January 16, 2009 here in Texas CC stores have already been closing down for months, and bulldozed/bought out to other companies. There's one at a rather new shopping center in League City (southeast of Houston) where there was a whole building and everything built for a Circuit City that was open for all of three months, at least half of which was a liquidation sale. "You tell me exactly what you want, and I'll explain to you very carefully why it cannot be." Link to comment Share on other sites More sharing options...
Tetsuo2501 Posted January 16, 2009 Share Posted January 16, 2009 here in Texas CC stores have already been closing down for months, and bulldozed/bought out to other companies. There's one at a rather new shopping center in League City (southeast of Houston) where there was a whole building and everything built for a Circuit City that was open for all of three months, at least half of which was a liquidation sale. there was a Circuit City building in Friendswood(i think it was Friendswood), right next to 45, and the Baybrook Mall, it served as one of those Halloween stores during those holidays, last time I was in that area which was about two weeks ago, they had already demolished it, and had the lot up for sale. Link to comment Share on other sites More sharing options...
Mike Tequeli Posted January 16, 2009 Share Posted January 16, 2009 They own all the Radioshack's in Canada, I'm not really sure what the means at this point. I can't believe nobody wanted to buy it, something has to come of this. Link to comment Share on other sites More sharing options...
Mainland Marauder Posted January 16, 2009 Share Posted January 16, 2009 here in Texas CC stores have already been closing down for months, and bulldozed/bought out to other companies. There's one at a rather new shopping center in League City (southeast of Houston) where there was a whole building and everything built for a Circuit City that was open for all of three months, at least half of which was a liquidation sale. there was a Circuit City building in Friendswood(i think it was Friendswood), right next to 45, and the Baybrook Mall, it served as one of those Halloween stores during those holidays, last time I was in that area which was about two weeks ago, they had already demolished it, and had the lot up for sale. Yeah, I know the one you're talking about. It's close to Friendswood anyway. I'll actually be passing by that area here in a bit. That building they tore down was much older than the one they closed in League City though. This was a building in a shopping center that didn't exist two years ago and the CC building was probably finished six months ago. That whole thing looks pretty dead. Not good to build a bunch of buildings at the beginning of a recession when there's no telling if they'll ever fill them with paying tenants. "You tell me exactly what you want, and I'll explain to you very carefully why it cannot be." Link to comment Share on other sites More sharing options...
Randall Flagg Posted January 16, 2009 Share Posted January 16, 2009 Great, more asshats I have to compete with for jobs. Link to comment Share on other sites More sharing options...
jersiq Posted January 16, 2009 Share Posted January 16, 2009 here in Texas CC stores have already been closing down for months, and bulldozed/bought out to other companies. There's one at a rather new shopping center in League City (southeast of Houston) where there was a whole building and everything built for a Circuit City that was open for all of three months, at least half of which was a liquidation sale. Liquidation sales are a sham. The company sells the inventory to a liquidator, and they keep the prices the same. They just get feet through the door with snazzy signage. Happened with CompUSA, and will happen here. Link to comment Share on other sites More sharing options...
fuckindumass Posted January 16, 2009 Share Posted January 16, 2009 I stopped shopping there years ago. BestBuy + Newegg = No need for anything else. Link to comment Share on other sites More sharing options...
Picolini Posted January 16, 2009 Share Posted January 16, 2009 I stopped shopping there years ago. BestBuy + Newegg = No need for anything else. Never shopped there, for those reasons. They never undersold Best Buy in general, it's pretty much exactly the same imo. So no real point to them. Wish I could catch the deals there's sure to be. Link to comment Share on other sites More sharing options...
mike752 Posted January 16, 2009 Share Posted January 16, 2009 CC is my favorite electronics store. I got my laptop for $700 when everyone else sold it for $900 about a year and a half ago. I also bought my 32in Olevia (yes, they're bankrupt too) there and it was a steal at $550 back in 2007. Link to comment Share on other sites More sharing options...
voteneg Posted January 17, 2009 Share Posted January 17, 2009 I always liked Bestbuy better. It's the hometown boy based right out here in MN. Link to comment Share on other sites More sharing options...
Tetsuo2501 Posted January 17, 2009 Share Posted January 17, 2009 here in Texas CC stores have already been closing down for months, and bulldozed/bought out to other companies. There's one at a rather new shopping center in League City (southeast of Houston) where there was a whole building and everything built for a Circuit City that was open for all of three months, at least half of which was a liquidation sale. Liquidation sales are a sham. The company sells the inventory to a liquidator, and they keep the prices the same. They just get feet through the door with snazzy signage. Happened with CompUSA, and will happen here. thats called false advertising, which is a crime speaking of CompUSA whenever they were going out of business, i got a lot of dvd's for 88 cents. i would say that was fairly liquidated. Link to comment Share on other sites More sharing options...
Gezim Posted January 17, 2009 Share Posted January 17, 2009 I always thought they sold their video games way to expensive. Usually 10 to 30 dollars more than stores like Best Buy. Link to comment Share on other sites More sharing options...
Mainland Marauder Posted January 17, 2009 Share Posted January 17, 2009 here in Texas CC stores have already been closing down for months, and bulldozed/bought out to other companies. There's one at a rather new shopping center in League City (southeast of Houston) where there was a whole building and everything built for a Circuit City that was open for all of three months, at least half of which was a liquidation sale. Liquidation sales are a sham. The company sells the inventory to a liquidator, and they keep the prices the same. They just get feet through the door with snazzy signage. Happened with CompUSA, and will happen here. Yep, pretty much. They'll mark something up before they give it the 75% price drop which gets advertised on the aforementioned snazzy signage. Doesn't mean you can't get a good deal but it probably won't be anywhere near as good as it's made out to be. And then, at the end of it all, there are 30K people going into the unemployment line. That sucks on its own, even if I won't miss Circuit City itself very much. "You tell me exactly what you want, and I'll explain to you very carefully why it cannot be." Link to comment Share on other sites More sharing options...
ryuclan Posted January 17, 2009 Share Posted January 17, 2009 I always thought that Circuit City was a branch of Best Buy. I mean the stores look pretty much the same. If times weren't so hard, maybe Best Buy would have bought them out. Link to comment Share on other sites More sharing options...
ryuclan Posted January 17, 2009 Share Posted January 17, 2009 I wouldn't sweat it. They'll probably be receiving their federal bailout in a couple weeks. Nope, they don't matter as much as the big car companies, or the banks. Their just a retail chain that has been slacking for years anyway. I hate that everyone is losing their jobs, but if I worked there and they were closing...I'd rob that bitch blind. Link to comment Share on other sites More sharing options...
SmellyJelly Posted January 17, 2009 Share Posted January 17, 2009 here in Texas CC stores have already been closing down for months, and bulldozed/bought out to other companies. There's one at a rather new shopping center in League City (southeast of Houston) where there was a whole building and everything built for a Circuit City that was open for all of three months, at least half of which was a liquidation sale. Liquidation sales are a sham. The company sells the inventory to a liquidator, and they keep the prices the same. They just get feet through the door with snazzy signage. Happened with CompUSA, and will happen here. thats called false advertising, which is a crime speaking of CompUSA whenever they were going out of business, i got a lot of dvd's for 88 cents. i would say that was fairly liquidated. Apparently, CompUSA raised their prices before applying the discount. I guess Circuit City is the same: http://consumerist.com/5079502/no-deals-no...t-city-closings Link to comment Share on other sites More sharing options...
Exkabewbikadid Posted January 17, 2009 Share Posted January 17, 2009 There was a Cicuit City in my town about 200 yards away from Best Buy. I never understood how it lasted as long as it did considering it was just a watered-down version of Best Buy itself. Although CC did come in handy a few times, like when VC came out. I went to BB and they were like "wut?", then I went over to CC and there was a big stand full of copies. Honestly though, I could do without either in my town these days since I take care of nearly all my computing needs through newegg. Link to comment Share on other sites More sharing options...
Randall Flagg Posted January 17, 2009 Share Posted January 17, 2009 Yeah newegg is where I built my first pc. Ordered all the parts cost me under $900, invested an additional 100 or so in ram and a dvd burner afterward. Played Farcry, HL2 and Oblivion just fine. Till it died this year, completely. shouldn't have got a cheap ass WD hard drive. Fry's over here in Palo Alto owns though in terms of in store buying. Link to comment Share on other sites More sharing options...
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