The "Real" Reason Circuit City Went Under
We know, news of Circuit City going out of business is pretty old at this point, but we were just now tipped off to this funny fake news story published in January about why the company really folded.
After fifteen minutes of being ignored by Circuit City executives, Pliego decided to try to find the documents himself. Frustrated, Pliego ultimately tapped acting Chief Executive James A. Marcum on the shoulder and told him he couldn't find the financial statements he was looking for.
Marcum said he would go in the back to check if they had any more. He reportedly did not return. "I think he went on break," said Pliego.
"Circuit City Can't Locate Any Help" [Barracuda magazine] (Thanks to hobosurfer!)
(Photo: Info Mofo)
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I wonder if they are offering a great deal on some "as is" financials?
Lol ... It's funny because it's true-ish
The last paragraph had me cackling maniacally.
The deal will reportedly be a 1 for 2 exchange:
$1 billion in cash for $2 billion in Circuit City Gift Cards.
Like i've been saying for years. Maybe if any CC actually had a register open, I would have purchased some things.
Marcum said he would go in the back to check if they had any more. He reportedly did not return.
"I think he went on break," said Pliego as he stormed out of the building, sarcastically muttering to himself, "Sorry to bother you."
Hahahahaha man I can't tell you how many times this has happened to me at Circut city!
But when you manage to finally buy your Circuit City, they won't let you open in and check the contents.
When you get it home, it's completely fallen apart with no hope of repair, and ALL SALES ARE FINAL!
Then when you go online to look for resolution, you find you paid more than the valuation when you could have gotten it for a write-off anywhere else!
I thought they were part of the fiscal crisis, when unable to sell expensive warranties, they shifted to junk mortgages without realizing that they were actually giving people money.
They had som "as-is" financials, but they were described as "irregulars" and "not complete" (like so many other Wall St. financials these days...)
Not really funny considering if you wanted to use analogies that actually happened this is how it would have went down.
Mexican billionaire Ricardo Salinas Pliego, was interested but the deal fell through when he insisted on buying just the speakers out of the home theater system box at a discount price.
Hopes of making an 11th hour deal with the Golden Gate private equity firm broke down late last night after their application for a Circuit City card were denied 10 minutes after the store had closed for the day.
The profit center was selling overpriced accessories and worthless warranties. Consumer electronics was just a front.
Quit selling appliances at the hight of the housing boom.
Failed attempt to hijack the dvd format with their pay per view divx format.
Failed credit card business due to poor lending practices.
who cares? Good riddance!
@YourTechSupport: That's odd. When I went to Circuit City a few days ago I bought a Drum Stool and a Rock Band Wireless guitar. I asked the girl at the checkout if I could open the Rock Band guitar box, since it felt light and was damaged (only Rock Band guitar in the store. I hate the Guitar Hero guitars) and not only did she let me, but she said she's been telling everyone to check their merchandise before she rings it up.
Maybe I found the one competent employee they managed to hire. Damn shame she'll be unemployed soon because retail needs more people like her.
@edrebber:
God I remember when they came out with those shitty 3 views for $50 movies, then you had to pay $3 a pop to rent/view them again. What a fucking joke.
They lost me as a customer a long time ago when A) it was nearly impossible to find anyone to help me B) When I did I might as well have asked my dog and gotten a better answer C) They started "Losing" rebates.
You do that to enough people they start voting their wallets and go to a competitor...they weren't a lot better but at least enough that they lost out.
CC went under when the management wouldn't price match a laser multifunction printer from other local stores (BB, OD, etc.) this past September. A week later, the MFP was purchased from Amazon, $100 cheaper than CC ($10 cheaper than BB and OD) along with free shipping and without a sales tax, $140 at the end. Some dummy finally bought it during the local CC liquidation sale, which was at $190.
In a couple of years, the CC name will resurrected like today's Montgomery Ward, Service Merchandise, and others online stores that have small presence with Fingerhut pricing. Haha.
I'm not a business expert but I did go in there multiple times looking to buy something and walked out when I couldn't find anybody.
At one time they employed people who knew what they were doing and (I believe) paid them on commission. Then they switched to high school labor and that was the last time somebody knew what they were talking about in a Circuit City.
That sounds much like the attention I received when I went in - on two different occasions - intending to purchase something (television, microwave). None. I left both times and spent my money elsewhere. Worst. Service. Ever.
@jedo1507r: I thought the same thing about 'Future Shop' but I'd have to go to Canada to shop there.
I thought they went under as a direct result of the Mad Magazine article! Now I know better!