According to anonymous insider tips, Circuit City is closing 155 stores and withdrawing from 12 markets. This will be officially announced tomorrow at 8am, says our source. A scan we received of a letter distributed to CC employees helps corroborate the story. The tipsters say that store employees were told this morning. No information was provided at that time about severance pay. Employees in certain departments, like car installation, and Firedog, will likely be out of a job within 48 hours. Warranties will still be honored. UPDATE 6: Here’s the complete official list of closing stores.
A Consumerist commenter on this post says this story is true, and a few posts in Google Finance forums also attest to the store closing. One post there says the store closings will be effective 12/31/08.
The news wouldn’t be entirely unexpected as WSJ reported on Oct 20th that the retailer was considering closing 150 stores. On Friday, Oct 31, CC was warned it get delisted from the New York Stock Exchange because its stock price averaged below $1 for 30 days.
You can already start to see which stores are closing by seeing which ones don’t show up in Circuit City’s online store locator.
Circuit City is officially fried.
UPDATE: A Consumerist commenter on this post and a message in the Google Finance forums have also said that the store closing are going to happen.
UPDATE 2: Another Circuit City insider writes: “A team of liquidators will be coming in and taking control of the store. They will set prices as they see fit, and price match guarantee, employee discounts, CC circulars, and the new one price guarantee are all out the window. The price you see is the price you will pay, although it ought to be at a bit of a discount. Firedog services as well as car audio installation are gone immediately. Returns and warranties have to be taken to a CC that’s not closing. No new stock will be delivered, we just gotta crank away and sell off everything, and when it’s sold, we hit the road.”
UPDATE 3: A CC employee scanned and sent us this letter he received from CC about the store closings:
UPDATE 4: In classy fashion, Chicago CC employees were told the news at what was billed as a “holiday kickoff” meeting that instead became a “holiday layoff” meeting.
UPDATE 5: Another CC insider reports, “Liquidators will be coming in on Tuesday and the affected stores will be shut down. there is likely not going to be a severance package for us being affected by the layoffs but we were given the option to get a bonus based on how many hours we worked under the liquidation process. We are not allowed to transfer to other locations and have to wait out the liquidation process before we can reapply. So essentially, we will have to take a paycut, a position cut, and more than likely an hours cut if we want to still work for the company.
More importantly I tried to find out what was going to happen to all the warranty computers. Customers will be getting a call from their local firedog techs tomorrow (Monday) about either to pick up their computers and take them to a different location to do warranty work, or for those who have already had their computers sent out for repair be told where they can pick it up. As far as I’ve been told everything that is out at our repair depots has already been set in motion and will not be shipping back to the stores that are closing. During the liquidation process we will no longer be accepting gift cards, coupons, checks, or circuit city credit cards.
I would tell people to call up their store tomorrow and see where their laptop is being shipped to because obviously that could be a very big hassle for people.”
(Photo: heartburn)
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Here is the official list: http://files.shareholder.com/downloads/CC/455361627x0x245809/2BFAC9D9-6CEF-4027-9E51-1C635F42F7A7/110308%20Store%20Closing%20List.pdf
And here is the official statement: http://newsroom.circuitcity.com/releasedetail.cfm?ReleaseID=344747
Due to the sound of the vendor credit problems, I don’t expect CC to be living much longer.
I work p-t at a Big Lots. I was told that BL did a 7 million dollar buyout of Circuit City electronics. I knew it was true when Flat Screens and laptops starting showing up.
Bah humbug, I haven’t stepped foot into that ripoff paradise in several years.
People have this thing called the Internet now, where UPS will deliver items directly to your house, tax free, lol.
And yet my electronics store is booming after 20 years. biggest problem is getting staff. I am in Recession proof Saskatchewan Canada and my store manager is from North Carolina. If you love to sell electronics email me at infolav@logans.ca
One of the stores that is closing is a brand new location in suburban Kansas that hasn’t even officially opened yet.
Well, it seems that CC has won the race to the bottom. Seems fitting since they were the ones who started it.
Unfortunately, they never were a strong competitor against Best Buy….and I think CC has closed stores in the last few years too…so it looks like they are loosing their footing……I like choices and only having Best Buy as the biggest electronics chain store…is worrying a bit.
Store offered Credit was probably a big hurter for them too just like the banks…alot of other companies besides electronic stores will probably have to do the same to survive in the coming months or year.
I don’t see any closings in mass or RI…it’s odd. They made the LARGER version of the store (much better btw) at that area in plymouth (superwalmart area)
The liquidation might beat the crap out of some other places.
Does anyone remember that Circuit City, just a few years ago, was the best performing company in Jim Collins’ book “Good to Great”? Obviously, Mr. Collins’ approach to management is worth some reconsideration given the fall of Circuit City. It would seem a new approach to management would be worth considering. Read more at http://www.ThePhoenixPrinciple.com
This is probably just the start of the downward spiral around the bowl. As with CompUSA, if you are a national company of this size, you are either in business, or you’re not; you can’t simply close such a huge volume of locations just to cut costs. Not only do you lose a chunk of sales volume, but you also lose a chunk of your purchasing power so stock for existing stores costs more. Add to that the fact that customers may just assume their local store is closing, whether or not it actually is, and you lose and even bigger chunk of sales volume.
I may not be sad to see CC go, but it’s always a shame to see that many people lose their jobs through no fault of their own.
I figured they would close the Clarksburg, WV store its always dead and looks so trashy inside. The employees are never really very nice but since its the only electronics store in that area I guess its doing well enough to stay open. I guess the Best Buy in Morgantown hasn’t quite killed it yet.
Well, I guess I should get my newly acquired CC Rewards Visa paid off and see about getting a Best Buy card instead. They should never have this problem.
I went to Circuit City today(11/5/08) to see if there were any real deals/aren’t any. TV’s marked down 10%, computers 5%, Ipods 5%, stereo equipment 10%. Sounds decent but their prices are higher to start with compared to other places online or around town.
Looking at an LCD TV and offered 20% off their price and they wouldn’t budge even with cash in hand. They said everyone is paying with cash so not a bargaining chip and that they can’t negotiate prices. I guess I will wait for future markdowns b/c the TV’s were not moving from what I could tell.
I ask a guy working there when they plan to have the next wave of markdowns and he didn’t know if or when there would be one. He also said that based on merchandise leaving the store today they may not have to mark down any further. I disagree with his assesment b/c of my sample of 10 people leaving the store only 2 of them purchased anything. The others like me left empty handed and wished I had that time wasted back.
just received a call… the socal district has been shaken up with the firing of most of the district staff including the dm, district operations manager as well as the regional vice president.
This is like people screaming before they reach the zenith on a rollercoaster…
@sqwigeebo:
This is like people screaming before they reach the zenith on a rollercoaster…
Brilliant- love the imagery…
They are actually opening a store near my house in KC.
And Circuit City files for Chapter 11….
[money.cnn.com]