Circuit City not bankrupt yet, mulls store closures

Ten days ago, word got out that Circuit City could be on its way to bankruptcy. The Washington Post said the U.S. electronics store chain had lost a recommendation from a “firm that advises manufacturers on whether to ship goods to retailers,” signaling it might have trouble paying vendors. The firm also faced a number of blows in recent months, including the departure of its CEO, Blockbuster’s withdrawal from a takeover bid, and $239-million losses for its last fiscal quarter.

Today, the Wall Street Journal reports that Circuit City is considering a plan that would involve shutting “at least” 150 stores and cutting jobs. Circuit City sees the move as a potential alternative to filing for Chapter 11, the WSJ adds. Circuit City has also enlisted the services of a corporate law firm and a consulting firm to come up with a turnaround strategy. The law firm—Skadden, Arps, Slate, Meagher & Flom LLP—reportedly walked Kmart through its 2002 brush with bankruptcy.

According to the WSJ, Circuit City is scrambling to prevent a bankruptcy filing before the holiday season in order to avoid damaging consumer confidence: “Customers might doubt the ability of a retailer involved in bankruptcy proceedings to provide warranties on products like laptop computers and flat-screen TVs.”

Comments closed
    • UberGerbil
    • 11 years ago

    *[

    • AmishRakeFight
    • 11 years ago

    the last commercial with the girl dating the digital camera is probably the best commercial CC has ever done, and that doesn’t say a lot.

    • Tanj
    • 11 years ago

    q[

    • Forge
    • 11 years ago

    As an East Coaster, I’ve never even seen a Fry’s. My choices used to be good, but now consist of Best Buy, Circuit City, and a LONG drive to Micro Center.

    Not big winners any of them.

    BRING ON THE FRY’S!

      • BobTheBacterium
      • 11 years ago

      I grew up in California with a Fry’s at a reasonable distance, but since moving to central Ct all I have are staples and best buy. Oh how horrible it is!

    • just brew it!
    • 11 years ago

    Maybe TigerDirect will buy them out, just like they did with the remains of CompUSA. Tiger is getting into big-screen TVs in a big way, and also seems like they may have illusions of competing with Fry’s… so it wouldn’t be totally out of line for them.

    Too bad Tiger’s customer service is so uneven. I’ve had both good and bad (on a couple of occasions horrifically bad) customer service experiences with them.

      • ssidbroadcast
      • 11 years ago

      That reminds me, is NewEgg at all related to the now-defunct /[

        • Pettytheft
        • 11 years ago

        No, Egghead software had the right idea to go online but couldn’t compete. Eventually Amazon bought them out.

      • MadManOriginal
      • 11 years ago

      Id really like to see Fry’s go more national and expand in to areas that CC withdraws from. The instore-only deals make me jealous sometimes.

    • fantastic
    • 11 years ago

    I have the touch of death. I bought a monitor at CompUSA right before they announced the store closure. I just bought a TV at the local CC. Behold! For my cash is poison! Now, should I buy a GM or a Ford car? 😉

      • albundy
      • 11 years ago

      no, you should buy a good car.

        • A_Pickle
        • 11 years ago

        Er… no… see, then a good car company would go under… D:

      • SecretMaster
      • 11 years ago

      Macbook 😛

        • derFunkenstein
        • 11 years ago

        lolololololololol

        Let me know how that steerting wheel attachment works out.

      • A_Pickle
      • 11 years ago

      Ford. At least GM has learned from their past mistakes, and are now making headway in the environmentally-friendly vehicle realm. The Volt is a pretty neat car.

      • krazyredboy
      • 11 years ago

      I think you should buy a “Tickle me Elmo.” Those things need to die!

      • pogsnet
      • 11 years ago
    • Pettytheft
    • 11 years ago

    This is what happens when you remove commissioned sales in an attempt to create higher profits. They cut the wages of their employees as well. Don’t know what they expected to happen to the quality of their salespeople after that. Shortly after everyone that worked their just stood around collecting a paycheck.

    • Zarf
    • 11 years ago

    The loss of the former CEO can be considered a “blow” only as much as winning a million dollars can be considered “Chinese Water Torture”. It was something that needed to happen and was followed by rejoicing of great magnitude afterward. The man was a complete idiot.

    • Corrado
    • 11 years ago

    I’ll wait for the liquidation sales 🙂 I have no love lost for circuit city

    • ssidbroadcast
    • 11 years ago

    There are way too many partners in that law firm. Those names sound like a dungeon party in a game of /[

      • SecretMaster
      • 11 years ago

      I think Khelben Blackstaff & Co. would make a great name for a lawyer firm.

        • A_Pickle
        • 11 years ago

        I think they should just call themselves “Arps, Meagher, & Flom LLP.”

        😀

          • gsqr
          • 11 years ago

          i used to work for them as an intern, we just called ourselves “Skadden Arps”

            • Kharnellius
            • 11 years ago

            I prefer SASMFloP

      • derFunkenstein
      • 11 years ago

      Dewey, Cheatham, & Howe (nyuck nyuck *eye poke*)

    • Farting Bob
    • 11 years ago

    You know your in financial trouble when your future depends on being bought out by *[< blockbuster <]*, that beacon of financial success.

Pin It on Pinterest

Share This