Circuit City Announces Liquidation

Circuit City Announces Liquidation

After filing for bankruptcy protection in November, Circuit City was hopeful that it would be able to reorganize and reemerge. Now, only a day after the company held an auction that was suppose to be the retailer’s last chance to survive bankruptcy as an intact, though smaller chain, the company announced it has hired four liquidators to sell all remaining merchandise in 567 stores before going out of business for good.

While some people will certainly be excited about the potential to pick up electronics, TVs, and computers at closeout prices, the news is certainly grim to all of the company’s 34,000 employees. Circuit City said it will give employees 60 days notice before termination. Those who remain with the company to assist with the liquidation will receive pay and benefits. In addition to the loss of many jobs, the closing of Circuit City will result in fewer brick-and-mortar electronics stores for many consumers to shop for new gadgets.

"We are extremely disappointed by this outcome," James Marcum, acting CEO for Circuit City, said in a statement. "We were unable to reach an agreement with our creditors and lenders to structure a going-concern transaction in the limited timeframe available, and so this is the only possible path for our company."

Circuit City was the biggest electronics retailer in the U.S. until the mid-1990s when it lost share to other retailers such as Best Buy, Wal-Mart, and Amazon.com. Circuit City also operates about 765 retail stores and dealer outlets in Canada. The company said its Canadian operations will continue.

U.S. Bankruptcy Judge Kevin Huennekens had given the company permission to liquidate if a buyout was not achieved. However, the company still needs final approval of liquidation from the court. With court approval, the liquidation sale is to begin Saturday and run until March 31. The retailer's Web site and call center will cease to operate after Jan. 18.

Update: A federal bankruptcy judge approved Circuit City’s liquidation request, so the going-out-of-business sales will start tomorrow.

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I can only suggest one group worthy of handling the liquidation process: Will It Blend?

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They're gonna need a bigger blender for Circuit City lol

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I don't know... I've heard Circuit City's been downsizing.

All employees are instructed to report to work Monday to help establish their post-liquidation company: Soylent Cola.

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HAHAHA...you're in rare form today.

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Time to use those CC gift cards!

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I checked it out today -- nothing really too spectacular up for grabs. 10% - 30% off; Most of it is 10% though....I picked up some BDs for 20% off and box of DVD cases for 10% off.

All-in-all I hope eventually stuff drops to like 50% and then I will run in there haha

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If they start selling at close to 50%, expect Best Bi (it's funny, because it brings into question their sexual orientation) to aquire all of their product stock.

CC selling out at 50% would not be good for all the other stores that want to make any sales in the next three or four months.

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I went yesterday and they still had applications in the entrance way :)

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kewlncguy:

I went yesterday and they still had applications in the entrance way :)

Probably left there by an employee with a SICK sense of humor (and I like that)! What do you think, 3vi1?

 

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I'll offer a unique perspective on this. With CCs headquarters here in Richmond, VA about 5 minutes down the road from my house. My girlfriends Godfather is one of the execs there. He will be losing his job as well. Though he is better off than the others in the stores his future is just as uncertain. Not to many companys are hiring execs coming from a failed business right now. The stores are also a sad place to be. Employees are quite and you can just tell they don't wanna be there. I never went in there other than to grab a flash drive or some blank CDs/DVDs, but it is a big loss for richmond and it really hits home for me.My thoughts are with everyone from CC. 34,000 more people will be out of work very soon in a very rocky economy.

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I spent a fortune at linens and things for my new house. I even bought a server rack ($25) and 2 IBM Servers ($60 each)

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When prices drop to 50% then I'll go get some...lol

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