Circuit City closing 155 stores

[pixelthis]

Dont know if this is "news" or not but in an unprecedented move
CC is closing 155 stores before black friday.
The inventory will be consolidated into the stores still open in order to save money.
Don't have a link, there wasnt one where I read this, but its bad news if true.:1:

[thekid]

Not surprising since their stock is in danger of being suspended. Apparently to be a traded stock in the major markets it has to maintain a value of at least $1 per share and CC has dipped below that several times in recent weeks. The closing of the stores maybe an attempt to show Wall St they are trying to manage their business and will result in a rise of their stock price.

With their stock worth next nothing and consumer credit/buying pulling back significantly I would almost say it is a sure bet they will fold in the very near future. Their best hope now is a large investor or investment group coming in a pumping large amounts of cash into them. Given that they have lost market share to BB for several years and have unsuccessfully remade themselves several times its unlikely help is on the way. Not a huge fan of CC but they are in most places the only store in town that keeps BB from total market domination. If they close down their large retail "boxes" will litter the landscape in many places for years to come.

[kexodusc]

Not surprising since their stock is in danger of being suspended. Apparently to be a traded stock in the major markets it has to maintain a value of at least $1 per share and CC has dipped below that several times in recent weeks. The closing of the stores maybe an attempt to show Wall St they are trying to manage their business and will result in a rise of their stock price.

With their stock worth next nothing and consumer credit/buying pulling back significantly I would almost say it is a sure bet they will fold in the very near future. Their best hope now is a large investor or investment group coming in a pumping large amounts of cash into them. Given that they have lost market share to BB for several years and have unsuccessfully remade themselves several times its unlikely help is on the way. Not a huge fan of CC but they are in most places the only store in town that keeps BB from total market domination. If they close down their large retail "boxes" will litter the landscape in many places for years to come.

I'm not surprised. CC always seemed like a confused store to me - part Best Buy, part Radio Shack, all Suck.

In consumer electronics, prices are heavily controlled by manufacturers across the distribution chain - so being a competitor to BB made no sense - they can't beat them on price, didn't offer as much, and quite honestly didn't really do anything a whole lot different or better in that market.

Guess we shouldn't be surprised here.

One story that's not being told that is very relevant here - the consumer electronics industry is changing still - years ago the ol' Brick & Morter shops lost a lot of business to the big box retail stores. CC and BB are seeing something similar happen as more and more shoppers are turning to the internet for major purchases and price hunting - with significantly lower overhead costs, this business model has a huge advantage over a big box store - the market is shrinking for big box retailers and B&M specialty stores are being replaced by internet-specialty vendors.

It's a mad world...

[mbbuchanan]

For a couple years right out of high school I worked at a Circuit City and back then the writing was already on the wall. When I started their stock was trading around $40 to $50 and plummeted to under nine dollars within a couple months. They also had a huge upper and middle management staff that was slashed during my two years there, and they used to pay really decent commission and spiffs. The spiffs slowly went away and then the commissions got lower and not too long after I left they went hourly and all of the extensive training they used to give employees was extinct along with any kind of professionalism among the employees. Now CC is staffed by teenagers more intent on texting and talking about the party they were at last night than to help you find a product.It's a shame considering that used to be a place where it was not uncommon for some one who knew their stuff to make over $70,000 a year ( this was in the nineties so it was a more impressive number then) and in some cases in certain markets, crack six figures. Oh well,progress I suppose and all that....

[Rich-n-Texas]

I'm told six stores in the Dallas area will be closed. I say: "Don't let the door hit ya where the good Lord split ya". Decreased competion equating to higher prices at B&M's? Couldn't care less. Internet shopping is my choice 9 times out of 10.

[DetroitIrish]

http://consumerist.com/5074854/complete-list-of-closing-circuit-city-stores

[02audionoob]

Seems like every time I went to Circuit City it was just to pick up something advertised so low they weren't likely making any money off it. Those big boxes will make good used-car dealerships, I guess.

[thekid]

Those big boxes will make good used-car dealerships, I guess.

Have you seen the state of the auto industry lately.....I am hoping they will become huge vintage electronic thrift stores......... :D

[Wits]

The salesman I was talking to at HHGregg a couple weeks ago mentioned possible chapter 13 for CC. It came up when I was asking about him price matching to local retail stores after he offered his price guarantee good 'til Jan. 1, 2009; he said he may not be able to match CC's price if they were doing a major inventory reduction / liquidation sale.

The bargains are a comin'! :22: :yesnod:

[pixelthis]

Have you seen the state of the auto industry lately.....I am hoping they will become huge vintage electronic thrift stores......... :D


DREAM ON.
Most likely trash strewn "homeless hotels", joining all of the other
retail joints closing down,:1: