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.
circuit city death watch
Just in case you were wondering.
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.
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.
Reader Scott went to the closing Circuit City in Oklahoma City and found that there weren’t many deals to be had. He also noticed that Circuit City’s liquidator seems to be having a problem calculating their discounts.
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…
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.
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!)
Circuit City has filed for chapter 11 bankruptcy. According to their press release, this will allow them to undergo corporate restructuring, cut costs, get out of leases and figure out a way to still make a go of it. The stores will continue to operate, and they will seek to still allow for returns, exchanges, and gift cards.
More Sadness: Circuit City is laying off between 500 and 800 people from its corporate headquarters. [InRich] (Thanks, Elizabeth!)
Your worst suspicions have been confirmed, the liquidator that ran the notoriously awful CompUSA liquidation (they actually raised prices, click here to see a photo) is conducting the liquidation of 155 Circuit City stores.
Tom says he went to one of the closing Circuit City stores to check out the liquidation deals and was disappointed. The whole store was marked down, but the deals about the same as normal “sale” prices.
The Wall Street Journal took a look at Circuit City’s current predicament today and concluded that they’re in deep sh*t. But that’s great for bargain hunters, right? Nah. Not really.
David went to Circuit City yesterday to buy a copy of the new Guitar Hero game, which, according to our extensive research, is currently on sale at Circuit City. Unfortunately, the employees at this particular store refused to sell him the game, then lied about its release date, so that they wouldn’t have to correct an error in their computer system. Why were they so reluctant to fix the mistake? Because the game was priced at $10,000 in the system, and to mark it down to its actual price would “look bad.”
A tipster tells us that more than a year of hemorrhaging money is finally taking it’s toll on Circuit City. Rumor has it they will no longer be able to adjust items to below cost — even if they’re price matching.