Probably not new news...but Circuit City files Bankruptcy

[snoopdan 5,000+ posts]

NEW YORK - Circuit City Stores has filed for bankruptcy about a week after it said it would close 20 percent of its stores.
The Richmond, Virginia-based electronics retailer has been struggling as nervous consumers spend less and credit has become tighter. It filed for bankruptcy protection on Monday.

Chapter 11 protection typically allows a company to hold off creditors and operate as normal while it develops a financial reorganization plan.

Circuit City says it has more than $1 billion in assets and more than $1 billion in liabilities. Courts do not require companies to provide more specific figures in filings.

The company says it anticipates it would have money to distribute to unsecured creditors, who get paid last.

Recently, Circuit City announced plans to close about 20 percent of its U.S. stores — cutting thousands of jobs — in an effort to return to profitability as it finds consumers reluctant to spend and its vendors less eager to give it credit.

No real surprise though.

Click to read more...

 

[Flipx99 5,000+ posts]

What that didn't mention is that vendors are unwilling to front them merchandise over the holiday season...knowing they may not get a dime for it.

 

[LazyRider 10+ year member]

The CC by my house is hiring lol. I found it pretty odd.

 

[snoopdan 5,000+ posts]

Thats unfortunate, that will even hurt their bottom line even more. Or possibly destroy whats left of the bankruptcy filing.

The CC by my house is hiring lol. I found it pretty odd.

The trickle down effect probably hasnt hit them directly yet.

 

[Flipx99 5,000+ posts]

Yes.

I was in the market for a new TV. However, I got a near free one on Friday. I would drop by to look but it's too far away.

 

[slim8605 10+ year member]

The CC by my house is closing soon and is having a big "sale." They raised prices and slapped a 10-30% off sticker everything. I went to look at a tv two days before the sale and it was 1099. Went back a couple days later and it was 1299. I'll go back again today to see if they really have any deals

 

[Ken448 10+ year member]

One of my friends is a lead buyer for Big Lots, and is in negotiations with CC regarding their inventory.

 

[ryan8551226 10+ year member]

The above comment reminds me of when compusa closed up most of their stores. They raised all the prices and slapped 10-30% off stickers on them. Do they really think people are not going to notice?

 

[Flipx99 5,000+ posts]

The above comment reminds me of when compusa closed up most of their stores. They raised all the prices and slapped 10-30% off stickers on them. Do they really think people are not going to notice?

Empiracle evidence suggests they do not.

 

[Ken448 10+ year member]

The above comment reminds me of when compusa closed up most of their stores. They raised all the prices and slapped 10-30% off stickers on them. Do they really think people are not going to notice?

Thats typical of MOST "liquidation" sales

 

[HellsRise 10+ year member]

Unfortunately, all those stores that are closing and having liquidation sales are no longer owned or operated by Circuit City. The deceit is all done by the liquidation company that bought out the stores and their inventory.

This announcement really sucks, as I was planning on staying with this company until I graduated college...looks like it won't be around that long.

 

[slim8605 10+ year member]

Yea I noticed the same thing happened at Linen and Things(I'm moving) which is also closing here. Thats why I made sure to check out CC beforehand.

 

[Flipx99 5,000+ posts]

Yea I noticed the same thing happened at Linen and Things(I'm moving) which is also closing here. Thats why I made sure to check out CC beforehand.

My local linens and things have been rather slow about price reductions. They are coming around though.

 

[slim8605 10+ year member]

My local linens and things have been rather slow about price reductions. They are coming around though.

Same here. I ended up just getting a lot of my stuff from jc pennys since they had a lot of good sales going on the last couple of weeks. I'm sure the closer they get to actually shutting down prices will fall more.

 

[HellsRise 10+ year member]

My local linens and things have been rather slow about price reductions. They are coming around though.

Weird, the one around here dropped the prices pretty fast...it wasn't long before the shelves were about the only things left to buy.