[Reueters] Circuit City Files Bankruptcy

2500 Views 46 Replies 42 Participants Last post by Mootsfox, Nov 11, 2008

Black Magix

Discussion Starter · Nov 10, 2008

Quote:

SUPPLIER SQUEEZE

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.

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1 - 20 of 47 Posts

Havegooda

· #2 · Nov 10, 2008

Ouch. Good thing I didn't have any stock in them 0.o

~Gooda~

Robilar

· #3 · Nov 10, 2008

Best Buy is one of my client accounts. I'll bet they are happy about this.

shiarua

· #4 · Nov 10, 2008

BBY stock is down again today. They aren't doing too well either under the poor economy, although they certainly aren't in any danger.

Sazar

· #5 · Nov 10, 2008

Hahaha!
Take that with your horrible business practices.
I worked for CC for a few months, and they make it a business to be snakey with customers.
Good, good.

Playapplepie

· #6 · Nov 10, 2008

Bye bye CC. I liked them too. I got my RubyOrb from them for only $20

Jskeezy84

· #7 · Nov 10, 2008

yeah my past dealing with CC make me smile to hear this. By far the worst customer service. their prices are waaaayy high too.

CoolerMasterD

· #8 · Nov 10, 2008

Good thing I get Best Buy stock at a discounted price, I think now would be the perfect time to invest!

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dualhYbrid

· #9 · Nov 10, 2008

I actually have respect for them.
I bought my 150w 12" MTX Home theatre sub from them for $120
I've gotten steal-esque deals from them before

justarealguy

· #10 · Nov 10, 2008

Interesting.

So liquidation sales + black friday = epic win?

ImmortalKenny

· #11 · Nov 10, 2008

Quote:

Originally Posted by justarealguy

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Interesting.

So liquidation sales + black friday = epic win?

I highly doubt the closing circuit cities are doing a Black Friday. The one I work at isn't. Circuit City doesn't own the closing stores anymore, the liquidators do, they say yes and no to everything.

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snowman88

· #12 · Nov 10, 2008

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*

Cyth'Rawl

· #13 · Nov 10, 2008

Quote:

Originally Posted by snowman88

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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*

Read this: http://www.michaelrighi.com/2007/09/...-circuit-city/

Then you will see why... That story got media attention last year..

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joemaniaci

· #14 · Nov 10, 2008

black friday sales FTW.

legoman786

· #15 · Nov 10, 2008

2

Quote:

Originally Posted by Cyth'Rawl

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Read this: http://www.michaelrighi.com/2007/09/...-circuit-city/

Then you will see why... That story got media attention last year..

Wow... way to shoot yourself in the foot CC.

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michinmuri

· #16 · Nov 10, 2008

I do business through Amway, and CC is one of our partners. That sucks.

thlnk3r

· #17 · Nov 10, 2008

2

Quote:

Originally Posted by justarealguy

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Interesting.

So liquidation sales + black friday = epic win?

Justarealguy, actually the liquidation sales started last Wednesday

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michinmuri

· #18 · Nov 10, 2008

2

Quote:

Originally Posted by thlnk3r

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Justarealguy, actually the liquidation sales started last Wednesday

I wonder if that's why I got Red Alert 3 for $40?

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Squeeker The Cat

· #19 · Nov 10, 2008

i just went to cc yesterday due to the huge closing signs out on theitr store and got me this. it was normally $70.00 but even in their crappy store computer it said it wasnt in their inventory and asked how much it was on the shelf, i told them $20.00 and guess what I WIN!!!!! lol see yaa CC.

Cali

· #20 · Nov 10, 2008

3

Quote:

Originally Posted by thlnk3r

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Justarealguy, actually the liquidation sales started last Wednesday

They call it a liquidation, I call it jacking the price up 10% and giving the customers 10% off.

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