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What exactly happened to circuit city anyway? Were they over leveraged? Holding auction rate securities as cash equivalents? Or have they just not been selli
by Dilpil 18y ago
What 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!