Circuit City Could Be Gone Very Soon

[canadapettit 10+ year member]

Found this on their website

http://newsroom.circuitcity.com/releasedetail.cfm?ReleaseID=358471

RICHMOND, Va., Jan 09, 2009 /PRNewswire-FirstCall via COMTEX News Network/ --

Circuit City Stores, Inc. today provided an update on developments in its United States Bankruptcy Court proceedings, its restructuring activities and its operations.

On January 5, 2009, the company filed a motion with the Bankruptcy Court that seeks approval of procedures that would formally put the company up for sale, as a going concern, as separate business units or as individual assets - including the sale of inventory.

Presently, the company is engaged in significant discussions, meetings and negotiations with two highly motivated and interested parties concerning the terms of a going concern transaction. These interested parties are considering providing additional financing to allow the company to sustain operations and move forward with a subsequent restructuring through a stand-alone plan and/or purchasing the company or all or substantially all of the company's assets. The parties have substantially completed due diligence and now are in negotiations with the company and the company's major stakeholders in order to finalize such a transaction. While the company is optimistic that a transaction can be successfully finalized, no assurance can be given that this will occur.

The motion was originally filed under seal and is being "unsealed," or made public, by the Bankruptcy Court today in order to conduct a hearing on the motion on Friday, January 9, 2009. The company was required to file the motion pursuant to an amendment to the company's debtor-in-possession (DIP) credit agreement, which was approved under seal by the Bankruptcy Court on December 23, 2008. The motion currently provides that an auction of the company and its assets would commence on January 13, 2009, and a sale hearing would occur on January 16, 2009.

The company's discussions with the interested parties could result in a sale agreement, or the company and the lenders could further amend the DIP credit agreement prior to the January 16, 2009, sale hearing. If no agreement is approved with a party interested in a going concern transaction by January 16, 2009, and the auction does not result in a sale of the company's assets, the motion provides that the company may enter into a transaction that will result in an asset liquidation process commencing soon after the sale hearing scheduled for January 16, 2009, absent any further amendment to the DIP credit agreement deadlines.

Sucks for them. Some Mexican billionare who owns shares is looking into buying the company but they don't have much time to get a deal done.

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[Enellz 10+ year member]

Their worthless to me, still stuck in the eighty's in terms of their store layout. However I do feel sorry for the workers, no CC, more people jobless

 

[bigwheel15 10+ year member]

Mexican billionare

Well if that ain't contradictory.

 

[jdawg 5,000+ posts]

luckily Walmart still carries Xplode so I can still get my SLABB!

 

[Lil Poot 5,000+ posts]

old news.

 

[Tiger Bass 5,000+ posts]

I found the Circuit City's around here did a complete turn around. Superior customer service. Awesome sales and pricing. They still didn't carry as many products as Best Buy though in music and dvd's.

 

[BIGsherm7272]

bestbuy pwns cc in every aspect other than car audio (they are equally crappy)

 

[Fiercetimbo17 10+ year member]

Shiiit i need to sell my 26,000 shares....

 

[audiolife 5,000+ posts]

hopefully BB bites the dust soon! They are already talking about a shrink..then next walmart!

 

[Fiercetimbo17 10+ year member]

hopefully BB bites the dust soon! They are already talking about a shrink..then next walmart!

not going to happen they are still making money despite the economy

 

[audiolife 5,000+ posts]

not going to happen they are still making money despite the economy

When someone says they are teflon and then turn around and their profit is 50% of what they said 3 months prior shit is hitting the fan...//content.invisioncic.com/y282845/emoticons/laugh.gif.48439b2acf2cfca21620f01e7f77d1e4.gif

 

[blindskater1213 10+ year member]

they better not; I have a 2 year warranty for my touch to there!

 

[DBfan187 5,000+ posts]

They touched you where? How did you feel?

 

[silvercookie 5,000+ posts]

i hope they do.

more good close out deals.

 

[eharri3 10+ year member]

The Car audio section in every circuit city i been to has been looking like an afterthought for a few years now. Only a few beat up display models, tons of blank spaces on the wall, and lots of crappy brands and only 2 or 3 decent ones. It's as if rather than trying for a turnaround they gave up a long time ago and just figured screw it, if someone buys something, great, if not, who cares if we're goin out of business anyway. I really didn't go into the rest of those stores' departments that often but they didn't seem different. Say what you will about whether you like chain store brands but Best Buy is set up as if they care about selling you something. Lots of good brands on display, better sense of space and layout, the general look of the store says they care if you spend money there.