Circuit City fails to be wanted, will now be liquidated

[Hum]

Circuit City Stores Inc., the nation's second-biggest consumer electronics retailer, reached an agreement with liquidators on Friday to sell the merchandise in its 567 U.S. stores after failing to find a buyer or a refinancing deal.

The company, which employs more than 30,000 employees, said in court papers it has appointed Great American Group LLC, Hudson Capital Partners LLC, SB Capital Group LLC and Tiger Capital Group LLC as liquidators.

Calls to the Richmond, Va.-based company and the liquidators were not immediately returned.

Circuit City filed for Chapter 11 bankruptcy protection in November as vendors started to restrict the flow of merchandise ahead of the busy holiday shopping season.

It had been exploring strategic alternatives since May, when it opened its books to Blockbuster Inc. The Dallas-based movie-rental chain made a takeover bid of more than $1 billion with plans to create a 9,300-store chain to sell electronic gadgets and rent movies and games. Blockbuster withdrew the bid in July because of market conditions.

Circuit City, which said it had $3.4 billion in assets and $2.32 billion in liabilities as of Aug. 31, said in its initial filings that it planned to emerge from court protection in the first half of this year.

Under court protection, Circuit City has broken 150 leases at locations where it no longer operates stores. The company already closed 155 stores in the U.S. in November and December.

U.S. Bankruptcy Judge Kevin Huennekens had given the company permission to liquidate if a buyout was not achieved.

source

[Mathachew Veteran]

They should just sign up for bail out money. Congress seems all too eager to keep spending like it's the end of the world.

[Randolph]

The Circuit is about to be cut at the City. ;)

[darkmanx21]

Good thing for Newegg! :D

This is not really a surprise. Anyone been to CC lately? Empty..with a bunch of stupid employees who don't even want to help customers. They have prices that are not any lower than a government operated gas station. Maybe they knew something already..even though Best Buy also has stupid employees, they don't pressure since there is no commission.

At one time in school, the CC was known to be the place to get the good stuff "on the dl" - why? Cause every single employee there was scamming (blatantly stealing at times) the store and selling the stuff for a profit while stuffing their own pockets. This went on and on and on.

A bad store starts with bad management and then with bad employees it just gets out of control.

[Des]

Failed to be wanted? I want it, I'll offer them 50 bucks.

.......meh.

[Eric Veteran]

The local news here just said both stores here are closing and everyone's out of a job. Too bad they don't have much worth liquidating, and what they do have will be sent to a redistribution warehouse to be sold at another store at retail.

[Angel Blue01]

I'd better head to a store and get me some stuff at super-low prices!

[hyde+]

Should I cancel my pre-order????

[Lexcyn]

Too bad the Canadian side of Circuit City is still around .... they have some OK stuff that I would buy if it was 90% off, LOL.

[DELTETHISACCOUNT]

This sucks balls. As soon as I walked into work today, everybody looked depressed. Manager told me to stop taking in customer PC's and finish up on the ones that are here. Add me to America's growing unemployment list...

Time to switch over to the morally depressing Geek Squad...

[fix-this!]

oh goody ! the sales will be glorious and i guess it's time to buy a new pc !

i am sorry for all of those who will loose their jobs !

[vincent]

Clearance sale :woot:

[qdave]

its about time :)

[Minifig]

Wow.. this sucks. I'd rather shop at CC instead of Bestbuy. :(

[spacer]

This sucks balls. As soon as I walked into work today, everybody looked depressed. Manager told me to stop taking in customer PC's and finish up on the ones that are here. Add me to America's growing unemployment list...

Time to switch over to the morally depressing Geek Squad...

Sorry to hear that man. But at least you're knowledgeable with computers, so take comfort in the fact that there will always be jobs you can go for.

[bjoswald]

Maybe those working in their PC repair department could apply for some kind of grant or scholarship, get a certification of some kind, then apply for a better job elsewhere? At least it's a new start...

[fix-this!]

Sorry to hear that man. But at least you're knowledgeable with computers, so take comfort in the fact that there will always be jobs you can go for.

dont count on it, i had an interview with best buy for the geek squad and there were tons of other applicants present. with the unemployment rate the way it is even getting into an interview is tough. i heard for every job posted there are at least 300 + applicants so your chances of getting called is like picking a needle out of a haystack.

[Kevin.]

If Circuit City hadn't of gotten rid of the more experienced employees for younger ones just to save money, then it would of had a different outcome. It wasn't a bad store though, but I preferred Best Buy to it personally.

Unfortunately, analysts are predicting that more stores will close in 2009.

[jwjw1]

They should just sign up for bail out money. Congress seems all too eager to keep spending like it's the end of the world.

uh huh...the 'Democratic' congress...I'm sure Nancy,Harry and Frank already unloaded their Circuit City Stock....but Obama said he is going to create 1 million..wait he changed that to 2...wait he changed that again to 4 millions jobs...oh please stop waving that magic BS change wand...LOL

[Denis W. Veteran]

Too bad the Canadian side of Circuit City is still around .... they have some OK stuff that I would buy if it was 90% off, LOL.

I preferred when they were still Radio Shack. :/

Speaking of which, what will happen to all the Source stores in Canada?

[Admiral Michael]

I preferred when they were still Radio Shack. :/

Speaking of which, what will happen to all the Source stores in Canada?

+1. There are a few around here but it was way batter when it was Radio Shack.

[Lexcyn]

I preferred when they were still Radio Shack. :/

Speaking of which, what will happen to all the Source stores in Canada?

Me too. The Source is still in bankruptcy protection, and their restructuring is being handled by an outside finance company. Apparently their profits are in the green so they may stay open. http://money.aol.com/news/articles/_a/bbdp...-on-ccaa/299964

Speaking of being laid off as an IT worker ... I agree. It's absolutely ridiculous trying to find a job. I was laid off in September 2008 and still cannot find a job, since EI pays more than 90% of the IT jobs in this damn city.

[Rigby]

I still have their old jingle stuck in my head.

[knightracer]

Be careful with the liquidation prices. You might end up paying more than their prices now. Liquidators first raise all the prices back to MSRP and then discount 10%, 20%, and so forth.

[shakey_snake]

God, I have a $150 gift card from Christmas and nothing to spend it on...