Circuit City likey to close remaining U.S. stores and sell all its merchandise.

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source: http://money.cnn.com/2009/01/16/news/companies/circuit_city/

Circuit City to shut down
Court filing shows bankrupt electronics retailer seeks approval to sell merchandise in its remaining 567 stores.

By Parija B. Kavilanz, CNNMoney.com senior writer
Last Updated: January 16, 2009: 11:42 AM ET

NEW YORK (CNNMoney.com) – Bankrupt electronics retailer Circuit City Inc. said Friday it has asked for court approval to close its remaining 567 U.S. stores and sell all its merchandise.

The company said it has 30,000 employees.

“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.”

In a filing with the U.S. Bankruptcy Court for the Eastern District of Virginia, Circuit City - the No. 2 electronics retailer after Best Buy (BBY, Fortune 500) - said it had reached an agreement with four companies to start the liquidation process.

The company said the sale would begin Saturday and run until March 31, pending court approval.

“This is very significant. It shows you how bad things are for the the retail industry,” said George Whalin, president and CEO of Retail Management Consultants.

Whalin said management mistakes over the past few years combined with the recession brought down Circuit City.

“This company made massive mistakes,” he said, citing a decision to get rid of sales people and other mismanagement.

What’s more, given the credit market freeze, Whalin added that no manufacturer wants to sell to any retailer who doesn’t have money to pay for the merchandise.

At the same time, Whalin said there’s still a very slim chance that one or more firms that have expressed an interest in buying Circuit City could still buy it out of bankruptcy over the next few days.

“I wouldn’t say it’s completely over yet for Circuit City, but it’s almost over,” Whalin said. To top of page
First Published: January 16, 2009: 11:16 AM ET

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Damn…

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There’s your cheap TV Cossey!

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:retardclap

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no good cossey

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When CompUSA went out of business they had crazy deals…

Wouldn’t hurt to check it out.

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they did? maybe I went there too early, but the second month into their going out of business sale their PCs and TVs were only 10-15% off. WEAK! I swear they had the longest going out of business sale ever. F them in the ass.

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I had an extended warranty through CompUSA when I bought my laptop. Like a week after they went out of business the screen shit the bed on it. So now, that “laptop” is now my desktop. lol

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yea wil def have to hit up the liquidation sales if possible !

IMO online is where its at for electronics and especially computer hardware, no one wants to go to compusa or circuit city to buy some 20 dollar ram for 80 bucks !!!

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ya they had a very long sale, pretty stupid,

and tweeter in crossgates commons had some awesome deals before closing down !!!

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You mean crazy shitty deals.
They barely marked down anything.

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I duno when I was there in like the last few days before they closed everything was 50% then another 70% off. Crazy stuff like that.

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what was left at that point? Display shelves and staff shirts?

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Staff shirts LOL

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There were definitely still TV’s and computers, DVDs/CDs and such, nothing crazy, but still some stuff worth getting.

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damn, lucky you.

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Circuit City sucks anyway

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Hmm…perhaps I can pick up my Kenwood DNX8120 cheaper locally than buying online…hmmm…

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so does that mean i could get a xbox360 for cheep?

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Circuit City is done. I heard the CFO on the phone today. They are talking about how to save money on their property taxes.