Although they are accepting offers from buyers who intend to keep the retail operation going — Bloomberg reports that Circuit City is taking bids from liquidators — including the notorious Gordon Brothers (of CompUSA fame.)
Two More Retail Bankruptcies, Goody's And Gottschalks
By January 14, 2009
Gottschalks, a regional department store chain with 61 stores (most of them in California) has filed for Chapter 11 bankruptcy, but will continue to operate as usual. Goody’s a clothing retailer that emerged from bankruptcy in October, however, has failed and will be liquidated.
Circuit City Close To Being Sold… Or Liquidated
By January 9, 2009
Circuit City announced today that it is close to finalizing a deal to sell all or part of its operation to one of two undisclosed potential buyers— but if the deal falls through— the store could be liquidated.
Citibank, Senate Agree On "Cramdown" Bill To Prevent Foreclosures
By January 9, 2009
Ever heard of a cramdown? It’s when a bankrupcty court splits a home loan into two parts: a secured loan that’s equal to the current value of the home, and an unsecured loan that covers the rest of the outstanding debt. The secured loan is paid, and the unsecured isn’t. It can result in lower monthly payments (if the new loan amount is amortized over the course of the loan), but the important part is that it helps guarantee that a significant part of the loan will still be paid off.
By January 5, 2009
It’s expensive to go broke! “A Chapter 13 costs $3,000. Your lawyer will probably want part of that up front, with the rest paid off as part of the plan. A Chapter 7 goes for about $1,200.” Yikes. If you’re considering bankruptcy and looking for a little guidance, this article from the St. Louis Post-Dispatch is a good place to start. [Post-Dispatch]
Good Samaritan Rescues Linens 'N Things Workers Forced To Stand In Subzero Weather
By December 22, 2008
An independent contractor hired in connection…
KB Toys Manager Says Use KB Gift Cards Before Their Final Closing Day
By December 12, 2008
A tipster claiming to be a KB Toys manager says that consumers should use their gift cards before the final day of the liquidation.
Santa's Not Coming: All KB Toys Stores To Be Liquidated And Closed
By December 11, 2008
KB Toys has returned to Chapter 11 bankruptcy, says the Wall Street Journal, and will be liquidated by its parent company — Prentice Capital Management.
Zombie Trade-Ins! When The Dealership Goes Under, Your Old Cars Come Back To Haunt You
By December 4, 2008
Meet Christine O’Kelly. She just bought a new Kia and traded in her old car. Kia of La Quinta, California sold her a new Sorento and offered her $4,000 for her trade-in. They then took the other $4,000 she owed on her old car and rolled it into the new loan. That was in October. Now she’s getting calls from former employees of the now out-of-business dealership — telling her that she is still responsible for the trade-in and had better come pick it up.
By December 3, 2008
Bally Total Fitness has filed for Chapter 11 Bankruptcy… again. [MarketWatch]
Panic: Are Consumers Scared To Buy Gift Cards?
By December 1, 2008
Earlier this year when the Sharper Image declared bankruptcy, they briefly stopped accepting gift certificates. Eventually, they did start accepting them again — but with the requirement that consumers buy twice the face value of the card. This, it seems, has caused a fair amount of panic among consumers. Chain emails are circulating warning shoppers not to buy gift cards from various retailers — claiming that they are going out of business. But are they?
One Of Michael Vick's Expenses Is "Chump Change"
By November 21, 2008
Michael Vick, the allegedly herpetic former NFL quarterback and dog lover, has filed paperwork detailing the decent into financial ruin that lead to his bankruptcy filing in July of this year. Vick blew through $17.7 million dollars in two years preceding his Chapter 11 petition. If that sounds like a lot of money in a short amount of time, consider the fact that Vick has been imprisoned since November 2007. For those of you looking for some insight into Vick’s attitude towards money, the Smoking Gun points out that one of his check memos reads, “chump change.”
Circuit City Turns To Unrelentingly Optimistic Junk Email As The End Nears
By November 21, 2008
Reader James forwarded us an unsolicited email from Circuit City that we had to post because it’s just so chipper about the fact that they’ve resorted to spamming him out of desperation. It cheerfully proclaims, “Now you’ll be the first to hear the latest news,” before informing him that he’d been “chosen” as one of their “best customers” to receive spam.
Auto CEOs Flew Private Jets To Washington To Ask For Your Tax Money
By November 19, 2008
ABCNews says that the big three auto CEOs “flew to the nation’s capital yesterday in private luxurious jets to make their case to Washington that the auto industry is running out of cash and needs $25 billion in taxpayer money to avoid bankruptcy.”
Circuit City Gets A Loan, Lives To Fight Another Day
By November 11, 2008
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.
Timeline: How Circuit City Came Undone
By November 10, 2008
Bankruptcy is a time for reflection, we guess, so we put together a nice little time line of Circuit City’s precipitous decline over the past 2 years. We begin our journey in March of 2007, when Circuit City announced that it was firing everyone who knew what 1080p meant so that they could hire cheaper labor…
Poll: Will You Shop At Bankrupt Circuit City?
By November 10, 2008
The pundits are concerned that shoppers will be reluctant to buy electronics from a retailer that has declared bankruptcy, because they’re worried about whether the store will be there to honor their extended warranties and gift cards. (Ew, extended warranties!)
Liquidations: Say Goodbye To Tweeter
By November 5, 2008
Bankrupt high-end electronics retailer Tweeter is going away for good says the Boston Globe.
