The Conservative Cave
Current Events => Economics => Topic started by: thundley4 on January 16, 2009, 06:28:56 PM
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Circuit City became the largest retailer to fall victim to the expanding financial crisis Friday, announcing it will shut down its remaining 567 U.S. stores at the cost of 34,000 more jobs after failing to sell the business.
The closure of the nation's second-biggest consumer electronics retailer spells more trouble for the nations malls, and is the latest casualty of an unprecedented pullback in consumer spending that has claimed KB Toys, Mervyns LLC and Linens 'N Things.
"Very, very sad," said Alan L. Wurtzel, son of company founder Samuel S. Wurtzel and himself a former chief executive of Circuit City. "I feel particularly badly for the people who are employed or until recently were employed."
Richmond, Va.-based Circuit City had been seeking a buyer or a deal to refinance its debt, but the hobbled credit market and consumer worries proved insurmountable. Negotiations for an acquisition extended past midnight Thursday before finally falling through, Circuit City lawyer Gregg Galardi said.
Two potential buyers — Mexican billionaire Ricardo Salinas Pliego, who controls a chain of electronics stores in Latin America, and the Golden Gate Capital private equity firm — considered a shrunken form of the business, retaining as many 350 stores or as few as 180. But Circuit City couldn't secure the necessary financing or support from vendors.
Link (http://news.yahoo.com/s/ap/20090116/ap_on_bi_ge/circuit_city_bankruptcy)
It's no wonder their holiday sales were terrible. Noone Nobody was going to buy many big ticket items since they had already filed bankruptcy. I haven't been there since I first read about that. Maybe they'll have some good clearance deals.
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Its a black day for Richmond, my home. But its been an inevitable thing for the last 10-12 years. Bad business decisions cannot be overcome. God bless all those folks who tried to hang on but y'all should have known better.
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Okay, serious (sort of) question time.
How many "extended service plans" did they manage to pawn off over the last two months?
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Okay, serious (sort of) question time.
How many "extended service plans" did they manage to pawn off over the last two months?
I think the extended service plans get handled by a different company. When I worked for Best Buy, all that stuff got outsourced to companies that have contracts with the manufacturer to do the repair work. I spent most of last year fixing HP and Compaq laptops and a lot of the stuff that came in had Best Buy tags on it.
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Okay, serious (sort of) question time.
How many "extended service plans" did they manage to pawn off over the last two months?
oh you so bad ! guess ? not a lot.
but I agree that this wont matter much.
I'm so stupid, only did it once and it came up 4 months short... me so stupid !
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Okay, serious (sort of) question time.
How many "extended service plans" did they manage to pawn off over the last two months?
& gift cards that everyone was told were safe
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& gift cards that everyone was told were safe
Jeez, I forgot about that one too.
Wow. Just wow.
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I hated going into their stores. I think I only bought there twice.
Still, it sucks to be them. I feel real sorry for all their help.
Not that Best Buy is a whole lot better.
I think even the people who Idolize the ONE are feeling very antsy about what he is going to do, and are not in a shopping mode.
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It's no wonder their holiday sales were terrible. Noone Nobody was going to buy many big ticket items since they had already filed bankruptcy. I haven't been there since I first read about that. Maybe they'll have some good clearance deals.
They had some serious supplier issues right before the holidays too. I think it was Sony, which was reported to have actually ordered all of their semi-trailers on the road, to turn back and not deliver to Circuit City. Due to concerns of Circuit City filing bankruptcy, and Sony being stuck.
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oh you so bad ! guess ? not a lot.
but I agree that this wont matter much.
I'm so stupid, only did it once and it came up 4 months short... me so stupid !
I bought the extended service plan on my digital camera. I'm glad I did, because 2 months after the manufacturer's warranty ran out, the charging/power system stopped working and I had to send the camera off to be fixed. Now I remember to take the battery out of my camera if I won't be using it.