Circuit City files for bankruptcy and what this means to you

Circuit City, the large electronics chain, has filed for bankruptcy on November 10th. The mega-chain of stores attempted to slash expenditures by closing 155 stores and knocking off 17% of its work force. These drastic cuts were not enough to save the dwindling company from bankruptcy.

Circuit City explained that "erosion of vendor confidence, decreased liquidity and a global economic crisis all played a key roll in the down fall of the company." All of this along with no liquidity in its assets caused the mega-chain to buckle.

How will this affect that average consumer? In part, not much will be noticed unless you live near one of the closing stores. If you do, be prepared to see a liquidation sale and if you don't, the stores will continue to operate as normal thanks to a 1 billion dollar credit line that has been extended to Circuit City.

Bestbuy has also planned to potentially buy up closing Circuit City stores where it currently does not have a presence. At least for the areas affected by the store closing it may not mean a loss of jobs to the area. With Circuit City on the brink of disaster the consumer will be impacted the most. With Bestbuy and Walmart growing stronger everyday the barrier to enter the market becomes that much harder.

With less choices it gives more room for the remaining competitors (Bestbuy and Walmart primarily) the option of not being as price competitive as they once were. While both do sell the same electronics many people would prefer to shop at Best Buy rather than Walmart to buy their new TV.

With any hope the Bankruptcy Court will be able to turn around Circuit City. The company has been left in shambles do to poor leadership and even worse training of its employees.

Download: Store Closing List (PDF)

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32 Comments

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Well, didn't the file for bankruptcy a while ago? It's been an year or so before I heard so this was going to happen. I also heard something about Blockbuster offering to buy CC?

Actually I prefer Newegg for electronics. Once in a while they will sell a 64 bit memory speed video card as 128 bit. But my understanding is that the maker of the cards was ripping off newegg. I always make sure I test the video cards to make sure that doesn't happen. Newegg made it good and I got a better card really cheap.

Meh this sucks, I have always had better service at Circuit City than at best buy. Best Buy has dirty selling tactics. My list of electronic stores used to be
1) CompUSA
2) Circuit City
3) Best Buy

gamestargrinder said,
Meh this sucks, I have always had better service at Circuit City than at best buy. Best Buy has dirty selling tactics. My list of electronic stores used to be
1) CompUSA
2) Circuit City
3) Best Buy

Well, I worked at Circuit City for a while and they had dirty selling tactics too. From my experience working there, they had this coming.

this article contradicts what i heard about these store closings in that there won't be any liquidations or enormous sales. i've been reading that all of the inventory will be shifted to other stores.

Meh, never liked them anyways. They bought up all of what used to be "Radio Shack" here in Canada, and now they are called The Source by CC. To me they always sold crappy products .... that nexxtech stuff. Oh well, won't be a huge loss here anyways.

Best buy is just as bad as Circuit City. Low end junk, no inventory. Try to buy a higher end video card from them.

Best Buy and Circuit City are geared toward the average consumer, not the technology enthusiast. I would buy a TV, monitor, cell phone or digital camera from Best Buy, but never computer parts.

That truly is a shame, the store nearest to me isn't closing but, based on what I've seen there, the workers know more about the products there than Best Buy... although this guy that helped us didn't know that much about the software to check us out... but it still is a great store. We got a pack of ink for our Canon printer (all 8 cartridges) about $20 cheaper than Staples... it really is a great store.

Tanshin said,
That truly is a shame, the store nearest to me isn't closing but, based on what I've seen there, the workers know more about the products there than Best Buy... although this guy that helped us didn't know that much about the software to check us out... but it still is a great store. We got a pack of ink for our Canon printer (all 8 cartridges) about $20 cheaper than Staples... it really is a great store.

They are great? eh

The corporate hogs are really swilling at the public trough.
Gee, maybe it is the low end products they sell, lack of inventory, low paid knowledgeless workers that caused their downfall.

And terrible service. Face it, Circuit City SUCKED. The only good thing about them was the fact that you could order something online and if it was at a local store, you could just go and pick it up. Very nice.

rumor has it that this is just a band aid for them to get though the holiday... after xmas expect more closing if not all to close up shop if their sales do not pick up.

Bummer. The ones in our market (Kansas City) are all closing. Right now not many good deals. It sucks because I just started buying stuff from them too. In the last year I bought my HDTV, my wife's laptop, my Nikon D40 and a bunch of little gadgets and stuff. I really dislike Bestbuy overall but I hate Walmart even more. Not sure where I'm going to get my tech now

I wish i was where you were then cuz i'm sure there are some "slashed" prices to show up. None of the ones near me are closing. I guess that's one of the bad things about living in a populated area, even with "bad" times they are still getting lots of sales.

SHoTTa35 said,
I wish i was where you were then cuz i'm sure there are some "slashed" prices to show up. None of the ones near me are closing. I guess that's one of the bad things about living in a populated area, even with "bad" times they are still getting lots of sales.


In my experience, these stores don't "slash" much more than 10-20%. It ends up being cheaper to freight the sh!t to their other stores to sell than to discount it a bunch.

Yeah, I noticed the new and almost completely finished CC right next the highway in Merriam won't even open. I drove by it a few days ago, I could see some fixtures inside ready for merchandise, shame to see so much progress go to waste.