Insider: Smart Shoppers Are Going To Circuit City Stores That Aren't Closing
An employee of one of the closing Circuit City stores tells us that they were offered "big bonuses" for sticking around until Dec 31 instead of looking for a new job -- but when the liquidator showed up the "bonus" was $0.75 an hour. Ouch. Oh, and yes, the liquidator is raising prices according to this now disgruntled employee.
L says:
When we were told we our store was be closed, the liquidator told us that we would get a big bonus for sticking around until Dec. 31st instead of looking for a new job. Of course all the associates were very excited. The liquidator told us we would find out in about a week what that bonus is. We we found our on Sunday. They lied to us about it being big. It is only 75 cent an hour. If you are part time and work 20 hours a week, that is about $120 over two months before taxes. If you are full time and work around 40 hours a week, that is $240 over two months before taxes. Calling these big bonuses are an insult to the employees who are busting their asses while the stores are finally busy again, because of the liquidation.
After our manager heard that, he decided to give everyone unlimited hours, since he does not report to Circuit City anymore and to screw with the liquidator, since they are paying us right now. I've heard the horror stories about this liquidator in this forum before, but this is a new low to deceive the front line employees who have nothing to do with the mismanagement of this company that ultimately brought it down.
By the way, the liquidator raised many prices. True TV's are 10% off the MSRP, but in many cases Circuit City was already selling them for 30% off the MSRP. Smart customers are simply going to the Circuit City 5 miles away which is not closing and offering lower prices.
(Photo: Getty)
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Comments:
@parad0x360: It's a fair bet to say if they're already working at a Circuit City, they don't have an abundance of other options.
Kudos to the management at that store that's allowing unlimited hours of work. I know working in retail sucks right now, and even though the bonus isn't big I approve of any retail manager allowing you to work as much as you want. As a college student myself, currently working in retail, my hours continue to drop. They've dropped so much that I probably need to get a 2nd job but of course nobody is hiring because everyones in the same crappy economic situation. Major kudos to a manager that says screw you to the mean liquidators.
When CompUSA liquidated, I stopped by their Omaha store and was immediately shocked at the higher prices. A $109 Western Digital hard drive at Best Buy was marked up to $149 and then given a whopping 20% off. I walked around for twenty minutes with my blackberry comparing the prices to Best Buy, Circuit City and even Office Max/Office Depot. In every case, there was a minimum of a 10% buyer premium being tacked on for taking the risk of buying a product with the assurance of no returns.
Best advice? Ignore them and let them get salvage prices at 5% to 15% of cost by starving them of the business. This practice is unfortunately too common and needs to end.
@MercuryPDX: A timesheet signed by the manager is generally strong enough. What they'll do to/about the manager is the question.
@MercuryPDX: I worked at a small electronics shop that was bought out by a now defunct larger regional electronics chain. We were asked to do almost impossible tasks (for the hours we were given) and our manager seeing the only way to get things done was to give us the hours, let me work almost 80 hours. So I'm thinking 40 hours of overtime!
Well, because the workweek of the smaller company ran Saturday to Saturday, and the workweek of the new company ran Tuesday to Tuesday, they split my check up between three weeks. The first was for Saturday, the second was from Saturday to Tuesday, and the final was from Tuesday to the next Tuesday. One 80 hour check turned into an 14 hour check, a 26 hour check, and the remianing 40 hour check. Needless to say, I was pissed, but after checking, there was nothing I could do because the company technically stayed within state law.
Liquidators make their money by starting at MSRP and discounting 10% the first week or two, 20% the next, 30% the next, etc until they're out of merchandise (or they get kicked out of the building etc) so this is standard operating procedure to sell the most merchandise for the highest dollar. If you really want it, you will get it before it's gone and perhaps pay more... so the pricing of CC itself is irrelevant to the liquidator, they're just following their standard procedure to maximize their profits. (And I guess every cent paid to employees is offset from the profits, so no wonder they're not treated well.)
@parad0x360: This guy should stick around. With the managers attitude towards the liquidation people, it sounds like he would not be adverse to turning off the security cameras for an employee only backdoor sale.
I actually worked a Retail electronics Chain going out of business sale when I was younger. (Sun TV),
It was the most depressing, mentally stressfull place to work, very berating and in the end, you have "0" motivation to work there. The last few days and weeks where all that is left is yard-sale junk and over-priced items is the worst. the place turns in to a rats nest and all you want to do is go home and take a shower.
Most of us had new jobs within a few weeks, and belive me, they will fill in new people when they do go under.. People looking for temp jobs.. and they will sometimes pay them higher than what you were making for a 4-8 week stint.
@parad0x360: Just keep working and take the time to look for another job. As soon as you find one, don't actually quit. Just stop showing up.
@DownfieldComa: Not sure what state you're in, but I don't know how that could have complied with state law. Under most statutes, a "week" is considered to be, you know, a week. Like a 7-day period. Two "weeks" I can see depending on how you break up the pay periods, but it sure looks like they invented a 4-day week from Saturday to Tuesday. Federal Department of Labor might have a thing to say about it as well.
@Murph1908: I was going to say that! "Smart shoppers are going to Best Buy, as best evidenced by Circuit City's chapter 11 bankruptcy!"
@Beerad: According to the department of employment security, at the time, it was called a "transitional week", and from what I remember, it was ok, as long as all the hours within that week were paid in full. As far as the overtime, they were encouraged to pay out overtime benefits to workers who, like me, worked more than 40 hours in either the old system or the new system, however, this was only an option, not a requirement.
I'm paraphrasing, because its been a couple of years now, but the Saturday paycheck was to finish out the previous schedule, then the next paycheck which should've been Sun-Tues, was to get us in sync with the new schedule, and the (should've been) Wed - Tues check was the first to start the new system.
And there were people that were hurt by it more than I was, and of course, some people were helped by how everything shook out.
@revmatty: If the CC here goes under, I'm going to try and do what I've done with the previous closures; Office Max, 2 CompUSA's, etc;
Find out the date that they are estimating that they are going to close, and make out a list of things I want. Do comparison shopping first, and go in once a week until there is a significant benefit.
When CompUSA closed down here, I went in and found a few decent deals. The majority of things I bought, I put up on Ebay and made a ton. The biggest/best thing was a Nokia 800 internet tablet. Got that for $150 and sold on Ebay for easily twice that. So you just gotta have a plan and stick to it!
@dangermike: It's 120 bucks a month. Chump change, no matter how you spin it. It's gas money; not the kind of thing that would make me feel better about not putting in applications during a recession.
@Corporate_guy: although if he's already in good with his manager, he could use the manager as a reference in the future... no use in pissing off someone who can be of use in the future
(re-reading this, it kind of scares me that i think this way)
There is a reason to stay.
A friend of mine stayed on as the store manager with his dollar-type store until the bitter end. His bonus was $24,000 and every employee (all three of them) that had stay until the last day were given a pool of $24,000 to split between the 3 of them.
So sad to the employees that had split just a few days before.
Not every company will give bonuses, and most will never advertise the bonus even exists... but if there is a bonus it can be fairly substantial for somebody making pretty marginal wages.
This said, it is highly doubtful the scumbag liquidator will be given any bonuses.
@The Sharpie Control and Sensitivity Training Intern: Not many other companies will let you smoke pot on the job, ignore customers, and be a general loser douchebag so I agree with you there.
Don't drop out of high school, kids.
@thebluepill: I remeber Sun Tv, the one in my town is now an ABC Wearhouse. The ABC is just as shitty as Sun Tv was close to the end.
While it may work for some to go to a CC store that isn't closing, that isn't an option for us in the Kansas City area, where ALL the KC area stores are closing.
Not too bad, however, since I've not shopped there in quite a few years. Now, I'd much rather do my biz over the 'net, with such reputable companies as J&R and Newegg. At least with them I KNOW I'm getting a good deal and I'm not treated like a criminal should something go wrong with my purchase.
I strongly doubt that many will miss Circuit City in this area. Now if only Best Buy would suffer the same fate (and it probably will, given how poorly they treat their customers).
@parad0x360: They aren't all walking out to quite because in this economy it's good to be employed, even for a month and a half.
@parad0x360: I don't want to sound like I'm accusing the OP of anything, but from past experience I've learned that screwing the employees when you're closing is nothing but an invitation for them to steal everything they can get their hands on.
The other reason to stick around (and something I've seen people do at other stores going out of business) is stash some stuff that you really want to buy until the last day, when it's like 90% off.
@parad0x360: Yeah, but since you don't really need knowledgeable staff anymore (because they had them now!) you can hire any goon off the street
@dangermike: I'm sorry, but if I'm making 1600 to 2400, that's not going to strike me as a big bonus, which is what they were promised, and it's certainly not incentive to stay if there's a comprable option
@geeniusatwrok: Consumerist posted a list of all the closures - any not listed aren't closing is the current working assumption
@dangermike: i agree.
@HurtsSoGood: i think if you're the type to take work with a company liquidating your bankrupt employer & you're NOT putting in applications elsewhere, you've got bigger problems than bitching about making an extra $30/week.
I worked at a local retail store many moons ago that was closed. Before they made it public, we found out the schedule of when discounts would be made. The last week discounts went as low as 80% off. Of course we made the best of it and "shelved" some of the best gear and hardware so that when the scheduled discount arrived, we were able to get a better deal on products that should have already been sold.
For those of you working the store closing. I highly suggest that you don't do anything that will get you into trouble, but there are always ways to work the system to your favor. Make the best of it while you can.
@parnote: I agree. Best Buy will take much longer to die though. I haven't been to a BB since 2000. The parking lot of our local BB now has more employee cars than customers. It's coming for them, maybe in 5-10 years. Let us hope.
@mcjake: Well, with the holiday season coming up, employment opportunities in retail are at their peak now. Best to get hired as a "seasonal" employee with some company that's (hopefully) going to be around after the holidays and have at least a chance of keeping that job after the holidays.





















Well why dont you all walk out and quit? If nobody is working for them then they cant screw anyone and they will be in a tight spot so maybe the bonus will come back.