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Quote:
Originally Posted by JSE
It's possible Circuit City did not flip for the cost for the actual structure but they still had to pay for the buildout (interior),all the product, man power, insurance costs, etc.
Again, makes no sense.
If CC was supposed to anchor the shopping center, they likely had lots of options, including land leases or the developer sells them the land outright in order to secure the financing for other portions of the development (much easier to get financing if an anchor tenant is already on board). For a new shopping center development, the anchor tenants are often partners with the developer.
I know that once things get moving along, you can't really stop it and that might be the case here. CC probably had these plans and contracts in motion, even before they went through their first round of store closures. It's just strange that they would continue to stock and fit the building interior while other CC locations in the market were getting liquidated.
Close to my house, Mervyns department store relocated to a brand new building across the street from their old one, and the chain declared bankruptcy only a month later. There too, you had a brand new building that opened just in time to host a liquidation sale. But, at least that store opened for business!
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Quote:
Originally Posted by Woochifer
If CC was supposed to anchor the shopping center, they likely had lots of options, including land leases or the developer sells them the land outright in order to secure the financing for other portions of the development (much easier to get financing if an anchor tenant is already on board). For a new shopping center development, the anchor tenants are often partners with the developer.
I know that once things get moving along, you can't really stop it and that might be the case here. CC probably had these plans and contracts in motion, even before they went through their first round of store closures. It's just strange that they would continue to stock and fit the building interior while other CC locations in the market were getting liquidated.
Close to my house, Mervyns department store relocated to a brand new building across the street from their old one, and the chain declared bankruptcy only a month later. There too, you had a brand new building that opened just in time to host a liquidation sale. But, at least that store opened for business!
The CC is/was going to be third largest store in the shopping center. There is already a huge HEB Market Center (grocery store) open and an Academy Sporting Goods store which will open soon. I can see how things can't really be stopped once everything is put in motion but to outfit and stock the store? That's just plain stupid. I need to go by there again this weekend and see if they have started taking out the stock. I can't see them leaving it there for long and I don't think they would open the store just to liquidate everything. Seems like it would be cheaper to just move the stock to existing closing stores. There are two within 10 miles.
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I didn't want to start yet another Circuit City thread so here's the latest.
Circuit City is getting a BBB warning in my area because they are actually selling TV's and other big ticket items for more than what they were originally and putting a 20% discount tag on them. The news story said Circuit City going out of business is actually causing better sales in competitive stores. I went in CC Saturday before seeing this story tonight and saw this for myself. I went in looking for a bargain and found things that were supposed to be discounted at a higher price than seen online or other stores. They said a liquidation company bought CC's inventory and the right to sell it off for X amount of dollars and gave the value of the inventory. If the company sold the inventory at a discount they wouldn't make any money. They may not any way once every one finds out what's going on.
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Whadiya know
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Originally Posted by Mr Peabody
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Circuit City is getting a BBB warning in my area because they are actually selling TV's and other big ticket items for more than what they were originally and putting a 20% discount tag on them....
Caveat emptor
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The problem is that CC isn't selling anything anymore. All of their inventory has been sold. It's now a liquidator doing the selling.
They need to take down the old price tags though. That is a problem.
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Quote:
Originally Posted by JSE
No wonder they are going out of business. They just built a gigantic store a few miles from my house in a new shopping center. They started back in October. The thing is huge! I'm guessing a minimum of several million in construction costs alone. The problem is, it still has never opened! Probably never will now. There have been people working there filling it with inventory for the last month so I peaked through a rip in the brown paper on the windows and it looked like it's ready to open. Fully stocked and just sitting there. The shelves are full, lights are on, but no workers. Kindof eary?
There is a store near my house which moved into the now defunct CompUSA Store Front in Arcadia CA. They opened there doors with a Grand Opening a couple weeks before Christmas and soon afterwards hung a "Going Out of Business" banner across the front of the newly hung sign. The paint has barely dried on their newly paved parking lot.
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Quote:
Originally Posted by Feanor
Caveat emptor
Don't be using that Canadian slang on here, if your cubbards empty, just say so.
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1 Attachment(s)
Quote:
Originally Posted by Mr Peabody
I didn't want to start yet another Circuit City thread so here's the latest.
Circuit City is getting a BBB warning in my area because they are actually selling TV's and other big ticket items for more than what they were originally and putting a 20% discount tag on them. The news story said Circuit City going out of business is actually causing better sales in competitive stores. I went in CC Saturday before seeing this story tonight and saw this for myself. I went in looking for a bargain and found things that were supposed to be discounted at a higher price than seen online or other stores. They said a liquidation company bought CC's inventory and the right to sell it off for X amount of dollars and gave the value of the inventory. If the company sold the inventory at a discount they wouldn't make any money. They may not any way once every one finds out what's going on.
THIS "LIQUIDATION" company was quite upfront about what they do as a general rule.
First they move in MORE stuff, and you might have noticed some items not in the Circuit
"program".
Then they mark everything UP, and then put a 30% off tag on everything.
Granddaddy did the same thing when business was slow, put everything on the sidewalk and double the price, they usually had to get more stuff because they would run out.
AND I know THAT YOU KNOW what "caveat emptor" really means dr pee pee.
You may be one of the "blonds" on this site but you're not that blond.:1:
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I don't think they were "up front", if they announced "come on in, we just jacked up prices so we can allow a mark down and sell at original price while claiming we gave a discount", I don't think that would attract much interest. Most savvy consumers will notice what happened when they see the prices but others may be duped that don't normaaly shop online or keep there eye on the sales trends. I think most people do comparison shopping these days but you know about the slippery slope, if one turns a blind eye to the liquidators false advertising then what's next.
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Quote:
Originally Posted by Mr Peabody
I don't think they were "up front", if they announced "come on in, we just jacked up prices so we can allow a mark down and sell at original price while claiming we gave a discount", I don't think that would attract much interest. Most savvy consumers will notice what happened when they see the prices but others may be duped that don't normaaly shop online or keep there eye on the sales trends. I think most people do comparison shopping these days but you know about the slippery slope, if one turns a blind eye to the liquidators false advertising then what's next.
well, thats what I read in the business section of the news.
They outlined their whole strategy, which is basically what I said, verbatim.
They were quite up front about it, actually.:1:
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Quote:
Originally Posted by Woochifer
I know that once things get moving along, you can't really stop it and that might be the case here. CC probably had these plans and contracts in motion, even before they went through their first round of store closures. It's just strange that they would continue to stock and fit the building interior while other CC locations in the market were getting liquidated.
Not so strange really when you consider who's pulling the strings. As an extension of Pix's "one more paycheck" thought I would imagine most of the corporate officers had option collars.
With interest rates so low, the stock market is the only place to invest for reasonable returns, and one way to get insurance on your stock investments is to use a collar. With collars, your maximum loss on a stock is limited. For example, you could buy CCC (Not a real stock) for $68 a share and be guaranteed to receive at least $60 for that stock any time during the next five months (downside protection). This transaction is paired with a covered call so you could make around $2.60 a share in cash today (that's 3.97% simple interest or 9.52% annualized) and you will make even more if the stock price goes up.
It's only really illegal for the officers of the company if the company's portfolio consists of it's own suppliers and they funnel paper losses away from the primary's balance sheet. In today's world of byzantine shell corps who would really know?
I doubt the guys beind the desks had any problem paying some workers to put up fixtures and alphabetize the hip-hop discs for a few months, as it would help to maintain the illusion of normalcy with bankruptcy on the horizon. Everyday is a few more cents and when you're talking about millions of shares that equals a liferaft as the Titanic sinks.
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And so it ends. Goodbye CC, I knew ye well.
(Well, not really, but...)
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RIP, CC
"Well, at least he isn't suffering any more".
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Quote:
Originally Posted by Mr Peabody
RIP, CC
"Well, at least he isn't suffering any more".
RIP
(Rest In Pieces)
I drive through the lot, taking a short cut, not really thinking about it.
I look over at a blazing light, the local CC, or whats left of it.
Less than a year old.
All that is left locally is a local hi-fi shop.
And Sears has taken on a few more receivers.
But thats it, basically.
So I turn left, the light disapears as I round the corner, drive through the back,
and pull in at the Hardees for my after shift burger.
Feel like something has faded, disapeared, not just a store, but an ERA.
Sad, really.:1:
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Pix, you old fart don't you know that fat will clog your arteries?! Do you want it to explode if you ever had to chase some one again?
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