Ouch. Good thing I didn't have any stock in them 0.o
In recent weeks, suppliers pinched by the global credit crunch have tightened terms, sometimes requiring upfront payment from Circuit City before shipping goods.
Industry leader Best Buy Co, discounter Wal-Mart Stores and regional retailers such as hhgregg are expected to benefit from electronics store closures in the longer term, analysts have said.
But the flood of discounted merchandise from liquidating Circuit City stores could hurt Best Buy this holiday shopping season, which is expected to be one of the bleakest in recent years as consumers grapple with rising unemployment and the financial crisis.
"Longer term, you've got Best Buy, who's dominant in the sector, taking share. But in the short run it could feel the pain of the liquidation activity," Binder said.
According to the filing, Circuit City had $3.4 billion of assets and $2.32 billion of debt as of August 31, and more than 100,000 creditors.
The company has arranged a commitment for debtor-in-possession financing of $1.1 billion, which will allow it to continue to operate during bankruptcy.
Among the company's largest unsecured creditors are Hewlett-Packard Co, Samsung Electronics Co and Sony Corp, the filing shows. The largest shareholders include HBK Master Fund LP and First Pacific Advisors LLC, according to the filing.
Shares of Circuit City were down about 14 cents, or 56 percent, at 11 cents, before they were halted. Best Buy shares were down 15 cents at $25.44 on the New York Stock Exchange.
Originally Posted by snowman88
I am not sure where all this Circuit City hate is coming from!?!? CC seemed to always have new release games on sale cheaper than most retailers. I've seen good deals on HDTV's there too. Their car audio dept. is LOADS better than Best Buy's.
This is just going to feed Best Buy's sales, much to the dismay of all retail shoppers.
The only retail store I will even walk into now is Microcenter.. At least they attempt to keep up with online competitor's prices, unlike most stores.. *cough* frys *cough*
Originally Posted by Cyth'Rawl
Read this: http://www.michaelrighi.com/2007/09/...-circuit-city/
Then you will see why... That story got media attention last year..