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Systemax Wants To Buy Circuit City Website For $6.5 Million

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Systemax, the company behind Tiger Direct (and the buyer of CompUSA's remains when it went out of business over a year ago) has announced it plans to buy the Circuit City e-commerce business for $6.5 million cash plus a share of the revenue over a 30 month period.

If you can come up with $6.86 million by May 6th, you can fight for the site in an auction, and then maybe sell your own homemade trinkets on circuitcity.com.

"Circuit City wants to sell Web site for $6.5 million" [Richmond Times-Dispatch] (Thanks to globalman!)

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"CircuitCity.com Threatens To Rise From The Ashes"
(Photo: thivierr)

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36
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I wouldn't buy from anyone in that company bag-o-dicks.

By whatever name...
"Our service is state-of-the-art."

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Stupid people

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I don't understand this at all...buying the CompUSA name and stores...okay maybe. I don't think the CompUSA name was as damaged as CC's. What are they going to do now, just throw up another site that is a clone of tigerdirect.com? I just don't get how a company like TigerDirect (size wise..I have heard good reports of customer service lately) has enough cash to keep buying up everything.

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So, Circuitcity.com is the next Etsy?

I kind of miss CompUSA. My dad would take me there in junior high. It would be our father-daughter outing for the week. The man loves to look at computers.

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circuit city is still somewhat alive in canada... a few years back all the radio shacks got turned into "the source by circuit city"... and they are still here even after cc tanked in the us...

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@mbz32190:

I think the Circuit City website was actually built much better than Tigerdirect's. It was much easier to find things and didn't look like some Yahoo shopping page.

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Systemax sounds like the player in monopoly that buys everything that is not really needed then they go bankrupt because it bought to much crap. This must be the influx CircuitCity personnel they hired telling them its a good idea. (Bad descions) 1. Bought CompUSA, 2. Retail 2.0, 3. Circuity City management, they ruined 1 chain already and now the CC website.....GO SYSTEMAX!! YOU BUNCH OF IDIOTS!

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Ha....I posted a comment last week on the thread about CircuitCity.com rising from the grave. In my comment I said it would be brought back by the people who own Tiger Direct and CompUSA. I hate TigerDirect. They make every deal sound like a great deal, when Newegg has them beat almost every time.

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Would you like to purchase an extended warranty on your $6.5 million website? It's only $999,999.95, and it'll cover anything that goes wrong for another 3 years.

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Wonder if anybody has plans to buy the Linens-n-Things web site.

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@mbz32190: With time, this too (CC's bad rep) will pass.

I remember Egghead discount software. Once was great on the technical expertise and customer service side, although a bit high priced, but the expertise was worth it. Then they got bought, sold, rejiggered, and a lot of bad blood was created. Eventually they went bankrupt.

Amazon.com bought the name, and to this day if you go to www.egghead.com, you'll end up on an amazon.com page that lists a lot of what Egghead used to sell. Despite the bad experiences people had when Egghead was circling the drain, someone still thinks the brand has value.

Same thing here. CC used to be known for great service, again before they made a bunch of bonehead changes that sent them into the toilet. Eventually people will forget the bad, and go to circuitcity.com to buy something.

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@mbz32190: TigerDirect may not have enough cash, but I'm sure there are some, ahem, investors who do. And what better thing to invest in than some e-real estate abandoned by a defunct electronics retailer?

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@urbanturban666: Is it the freezing temperatures that preserves them, like cryogenically?

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Shoot it in the head! Damned zombies.

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@masterasia: Well what, are they supposed to advertise it as a lukewarm deal and oh hey btw here's a competitor with it at a better price?

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I don't get the point of this - I was hopeful when they bought up Comp USA, hopeful that maybe they'd be treated as separate entities, but then they just used it to offer the same deals as the original Tiger Direct. I can't see Circuit City going a different way - so what's this for, the name value? Getting all the people who were diehard CC buyers? Someone explain it for me.

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Will I get my job back? D:

I kind of miss that dump :/

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I disagree with some. The CompUSA stores in my area were dirty and run down and I would gladly see someone re-launch the name and stores, run properly.


Same with Circuit City. The problem was a HORRIBLE President and upper management that ran the company into the ground. The name is valuable and if someone lanched a well run web site and chain by the same name, it would be great.


Brand names have value. Sure, there are dents and dings on both the CompUSA and Circuit City name but why not pay $6-7 millon for a well known name when you would have to spend tens of millions to create a new brand from the ground up. It's like recycling. :-)

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@humphrmi: All right I got fooled by their web site --


Orders prior to 2/15/2009
As you may be aware, Linens N' Things and its related affiliates ("LNT") filed for bankruptcy in the United States Bankruptcy Court for the District of Delaware on May 2, 2008. On February 15, 2009, LNT Acquisition, LLC, the owner and operator of this website, purchased certain assets of LNT, including the brand name and the LNT.com website. If your order was made prior to February 15, 2009 the new LNT cannot help you with locating your goods or rebates. We understand your frustrations and recommend you open a dispute with your credit card company

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@PLATTWORX: "It's like recycling. :-)"


True. Just like putting cow shit in plastic bags and selling it as manure at Home Depot.

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If Systemax/Tiger Direct/CompUSA is stupid enough to blow millions on buying the Circuit City name, it's more proof nobody ever broke underestimating the intelligence of the average consumer.


Brand names have been bought, sold and licensed for decades under the logic people will pay for the name even if it's now attached to a cheaper grade of product. A few examples:


* When Whirlpool purchased Maytag, all "Maytag" washers and dryers are now built with the same lower-quality parts as Whirlpool, Kenmore and Roper models. Anyone who pays an extra $200 for the Maytag name is getting exactly that: an expensive name attached to a standard-grade product.


* AT&T hasn't manuactured a telephone in over 20 years. The AT&T name is licensed by V-Tech and other manufacturers to justify higher retail prices.


I can't wait until the "new" Circuit City opens. One of their Grand Opening specials will likely be a $3 extention cord re-branded "Monster Cable" at the doorbuster price of only $49.99.

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@gman863:


...nobody ever WENT broke underestimating the intelligence of the average consumer.

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FWIW, in Port Orange, FL, they're building a new shopping center that says "Coming Soon: Circuit City...etc etc". I think it's just an outdated sign though.

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@Penny Plastic: my dad and i used to visit Best Buy on a weekly basis. i still read the weekly circulars out of habit, even though i have 0 intentions of actually going to the store

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newegg is terrified of this development, I'm sure...

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@urbanturban666:

Not for much longer. Yesterday CC announced that they are selling The Source to Bell Canada. The Source BTW is just a re-badged RadioShack. InterTAN Canada was sued by RS for selling the RadioShack name to CC back a few years ago.

RS then opened stores in Canada. They then closed the corporate stores, but apparently some franchise RS stores still remain run by franchises in Quebec and couple in Ontereo.

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@Trencher93:

Circuitcity.com was one of the busiest electronics website on the net.

Why not purchase it? It had the best layout, look and everything. Same reason why best-buy completely copied it.

You guys and the few internet groupies who sit on this stupid website and complain about shit that the retailer has no controller over are pathetic. Companies have rules in place just like your parents did when you were kids.

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It's all about the name.

Ask a normal person what Systemax is - 99% will not know.

Ask a normal person what TigerDirect is - 75% will not know.

Ask a normal person what CompUSA is - 45% will not know (I know I had none in my area and never step foot in one.)

Ask a normal person what Circuit City is - 25% will not know.

It's all about getting a name out there that their customers will know & trust (yea, the ones burnt by CC in the past may avoid it, but in all honesty - the majority of dealing with CC were good, just some of the "loud" bad experience that come to website like this gave it some bad press.)

But in the long run - being able to see good through a company name that people have heard of - and trust - it is a good move by Systemax.

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Systemax is acquiring a bit more than the CC name:


"brand name, related trademarks and domain names"


"The sale also includes Web site content, customer data, toll-free phone numbers and certain online patents and applications"


Source: [www.twice.com]


Key info: CUSTOMER DATA and certain online patents and applications.

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@gman863: Regarding Whirlpool and Maytag ... Whirlpool improved the reliability of Maytag products. The last Maytag that was truly better built were their old top loaders; their kitchen appliances sucked (both for performance and reliability), and the Neptune front loaders were such pieces of shit that some say it single handedly ruined the company.

It prolly didn't help that Maytag closed their US factory and moved to a Daewoo plant in Mexico either.

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@Michael Yockey: yup...ontarios got a bunch...i always new that they still had more to do with radio shack than cc... there prices were still huge ripoffs and the radio shack branded crap they sold was then named "nexxtech", it was still poor quality and overpriced...

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@DarcyHans: Actually, it sounds to me that Systemax is going to resurrect some Circuit City stores just like it did with CompUSA. And why shouldn't they. Even though both companies went into the shitter because of bad customer service and company mismanagement, both of them still have name recognition and that's pretty important in terms of marketing. Take Kim Kardashian for instance. She's going to release a perfume called Kim Kardashian's Dash. This girl hasn't done anything in her life except being Robert Kardashian's daughter and having a big butt but she has name recognition and that's what's going to move product.

Who knows. Circuit City could come back and be the best damn electronics retailer in the near future and if that happens, everybody's going to forget the shitty times and Systemax knows that.

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Tiger Direct is well known for ripping people off. That happened to me twice. Ya, I know. Shame on me.

The time they ripped me off by selling me a GPS/NAV that i bought 4 weeks before Xmas as a gift for my wife. After 2 weeks of nothing, I tried calling and emailing. They would not cancel order without charging me a re-stocking fee. I argued that there's nothing to re-stock. But They would not refund my money and admitted that they sell items they actually don't have.

I loved Circuit City but will never, ever shop the new CC that is really tigerdirect.com. Go check out tigerdirect.com, it's the exact same website as circuitcity.com

You can redress up a pig, but it's still a pig.

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@Petrol42:

Going off topic, but how many people are doing a google search of kim right now?