Circuit City Gets A Loan, Lives To Fight Another Day
Circuit City has secured a loan from Bank of America that will pay for its operating expenses until it emerges from bankruptcy next year, says Bloomberg. This financing gives CC a new lease on life -- Yes, we may yet see the bankrupt retailer rise from the ashes to continue its proud tradition of ignoring customers who are standing at the register.
This is a test using rich text formatting and html links. It's the generic "company" ad that should appear on all posts with the Company category if they don't have an ad attached to a specific company.
Post a comment
Comments:
Why would BoA make this loan? They do read the news, don't they?
Bank of America doesn't see crisis, they see opportunity.
Bank of America, bank of Crisitunity.
@TecmoTech: What does BoA care? If Circuit City can't make the loan payments, BoA will just take it from their merchandise. BoA WILL get that money back, whether Circuit Crappy likes it or not.
Anyway, I'm hoping this will turn the retailer around. More competition is usually a good thing. The last thing we need is Wal-Mart to take over any more of the market, and/or the possibility of some even worse Chinese company setting up shop on our shores.
Just wait until the fees get piled on when CC's first check bounces!
Imagine the fees Circuit City will see from BoA if every day consumers get hit with nasty bank fees. WOW!
Another reason to hate Bank of America?
Seriously, have the BoA-ums ever been in a Circuit City? Even long before the implosion, their stores were a nightmare (CS desk is not a register, not ever ever ever!). The company did fuck-all to slow the collapse. Why invest any amount of precious capital in a business that proved it didn't know how to avoid failure even when people were shouting at them what to do?
Unless they know something the rest of us don't, like Circuit City's plans to resurrect Jesus in electronic appliance form.
Joke's on CC. It's an adjustable rate loan courtesy of Countrywide.
This saga is turning into a drawn-out horror flick. Just *explicative* die!
well at least it's not one of the banks that got the bail out...
There goes my BofA stock.
Splendid, BoA will take a gamble on Circuit City but they still can't have my direct deposit ready for withdraw until Friday afternoon when LeSalle - pre BoA takeover - could pay up on Thursday nights.
As a Circuit City employee (Computer Sales, at a store that's not closing) I totally disagree with the statement at the end about ignoring customers. Our managers are always telling us to have someone in line and if it's busy, get an extra. I'm sure there's asses that will ignore you at Circuit City, just like every other store you go to, but I know we sure as hell try get the line going.
Zombie Circuit City!
I hate BoA but that dont make stupid decisions. I'd imagine there's a clause in that contract that makes BoA full owner if shit even slips a little.
Electronics Store of America anyone?
Bank of America is just getting the first spot in line to collect if Circuit City decides to shut down and file bko.
This sounds like a really stupid move on BoA's part to me, but they must smell some sort of rip-off potential or figure they can sock it to CC with high loan rates until the latter burns and crashes for good.
@hi: ah fuck. fail on behalf of the gov't then. idiots. "we don't need it but we'll take it" yeah how many people turn that down?
RAAAAAAAAAARRRRRR!!!!!
@blackmage439: Hey if there was a Chinese company in the US, we could cut out the middleman Wal-Mart and just give our money DIRECTLY to China. Efficient!
@310Drew: Bingo. I'll bet they already have a lot of capital tied up in CC and are angling for some sort of preferred lender status.
See? If the government bails out banks that do dumb things, you're reinforcing the behavior. Unless BoA is a fox and will get primo real-estate when CC defaults - what is collateral on this loan?
OK the airlines get bailed out, the banks get bailed out, and retailers who don't know how to give customer service get bailed out....even those who can't pay their mortgage get bailed out. How about those of us who have lost most of our retirement savings with the stock market, have tried to start a new business and racked up debt the size of a small house. No help for us little guys just trying to make happen our dreams of a business that actually provides personal customer service. Give it all to the idiots who make millions and let us little guys die and never be able to get a loan at all, ever, simply because we are not important/big/stupid enough. GRRRRRRR!
I read this via Google Reader, just saw the headline, and said "Who in the hell would give Socket Circus a loan of any kind?"
Then I clicked the link and saw the picture. And it all made sense.
Somebody notify Bank of America CEO Kenny Lewis that Circuit City is a dead horse. Oh, old Kenny doesn't care. He got his multi-millions in T-bills. So what the F---.
We have become a country of crying babies. Nobody can fail. Nobody can feel pain. Bailout madness is going to cause a giant inflationary situation in the USA in the next 5 years. The Fed is going to burnout the printing press. Mindless. Madness. It is going to get real ugly. Long life the welfare state.
lol so true.
standing at the counter waiting to hand them money...being ignored.
standard cc experience. they are too good for your money.
@TecmoTech: It's probably debtor-in-possession (DIP) financing, which gets higher priority than general unsecured financing.
Chapter 11's purpose is to reorganize the company, and lenders are more willing to give financing to a company if they can get priority in repayment out of a bankrupt company's Chapter 11 plan.
Maybe with this catastrophic downturn and a new executive team they'll reorganize to be a worthwhile retailer. They need to update their stores, teach customer service, and follow through on things they say.
Maybe a name change is in order to shake that old Circuit City vibe?