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Circuit City files for bankruptcy
- josefresco 18y agoSubmitter: "finally" as in you were hoping they were going to file? Or finally as in they were teetering on the brink for a long time and just fell over the edge? Best Buy is the evil around my locale, so I don't have any negative associations with CC, which is why I ask.
- ashishk 18y agoProbably a 20/80 mix, 80 being the latter =) CompUSA is my evil after several really bad experiences with their customer service. I just feel like it was inevitable.
- sgrove 18y agoThey've been teetering on the brink for several reasons - primarily their inability to compete with Best Buy. Their locations, architecture, and advertising couldn't match the sophistication and forethought given to Best Buy's. The last two are especially obvious in the case of older Circuit City stores. I don't much care for either of them, I've had bad experience all around. I generally only buy things here and there online. But it's still quite apparent that Circuit City has been playing catch up for quite some time.
- Dilpil 18y agoWhat exactly happened to circuit city anyway? Were they over leveraged? Holding auction rate securities as cash equivalents? Or have they just not been selling much for a long time?
- swilliams 18y agoI think it's primarily that Best Buy came in and took all of their business. For all of its faults (and there are plenty), BB runs a pretty good ship.
- tortilla 18y agoBest Buy was eating their lunch, breakfast, and dinner. So in response, they laid off their highest paid sales staff and replaced them with cheaper alternatives. Even the reduction in payroll expenses couldn't save them (might have been too little too late). Not only were the competing with BestBuy, but also with more efficient competitors such as Amazon and NewEgg.
- Dilpil 18y agoAhhh yes now I remember. Stupid accounting tricks: look how much money we saved!
- callmeed 18y agoWhat, no bailout plan for the retail electronics industry? Seriously, didn't they just announce closing 150+ stores a week ago? Why not file then? They had to know it was coming.
- ssharp 18y agoThere were questions on whether or not they could get the credit to actually file for bankruptcy. This is chapter 11, not 7, so they are attempting to restructure their finances and stay in business, not liquidate.
- redorb 18y agoyeah, all the CC's in my city were looking depressing anyway, guess they got put out of there misery.
- helveticaman 18y agoWhy no bailout? >:)
- sfk 18y agoGood. I've been frustrated by large consumer electronics stores for years. Customer choice has been steadily decreasing to the point that I simply refuse to buy new things. Examples: - A couple of years ago it was virtually impossible to get a black colored TV (in Europe), they were all silver. - Now you cannot get CRT TVs or monitors any longer. - Practically all notebook screens are wide screen, glossy and with an incredibly poor dpi. I rather spend my money elsewhere.