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back to article Circuit City files for bankruptcy protection

Beleaguered US consumer electronics retail giant Circuit City today filed for bankruptcy protection. The firm said that its business and 17 affiliates filed for Chapter 11 protection from creditors with the US bankruptcy court in the Eastern District of Richmond, Virginia, where Circuit City’s headquarters are based. The …

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  1. max allan

    What, surely not?

    " in some instances demanding up-front payments from retailers before the goods are even shipped"

    Those pesky wholesalers, demanding that someone pay for something before they'll send it out. I just can't imagine how the retailers will survive now that they're going to have to have made some profit before they can buy something else to sell...

    I wonder if we can reverse the whole situation : local supermarkets let me take as much shopping as I like and then I only have to pay for it when I use it.

    Or, Christmas presents that I give out now and only have to pay for when the bill comes in, after the 25th December.

    That would solve the credit crunch!

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  2. Gene Cash Silver badge
    Unhappy

    This sucks...

    Their sales people (at least in my area) were about the only actually clueful electronics sales-folk around. Far better than Worst Buy morons who can't even bother to get the correct item out of lockup the first 3 times.

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  3. Charles
    Unhappy

    @max allan

    The situation already exists. Two forms: called credit and checking overdrafting/line-of-credit. And we're suffering because of *those*, too.

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  4. vincent himpe
    Thumb Down

    two fingers to them

    i was in one of the closing stores. Their prices were much higher than in non closing stores , and they don't even follow the ads anymore. They wanted to sell me a usb drive for 179 ( after all 'store closing discounts' that non closing stores had on sale for 129 ... When i complained , the answer was : sorry , the closing stores are no longer part of circuit city but belong to a liquidator. Nevertheless they were still waving big plaquards at the corner of the street with the circuit city logo on them. Bunch of tossers.

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  5. Timo

    nice play

    This lets them keep all of the gear that they currently have and maybe not have to pay their vendors. Suckers. No wonder their suppliers started getting nervous. Rumor had it that a month or two ago one company (Sony?) had trucks en route to Circuit City stores and called them back home since they had no idea if they would get paid.

    Hope that Circuit Sh1177y will have enough inventory to last them through the holidays. The stores by me (that just closed last week) looked empty - half the store was just carpet no racks no nothing, and that was probably a year ago.

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  6. Anonymous Coward
    Anonymous Coward

    CC saved me $$

    Circuit city was good to me: I bought an LCD TV at Fry's, then saw a circuit city ad for the same item at a much lower price. Fry's called up CC while I stood there and CC gave an even lower price over the phone, which Fry's met. When all was said and done, CC saved me about $500 and I didn't even buy anything from them.

    Schadenfreude/irony aside, the real lesson is that competition, even from crappy companies, is a still good thing for the consumer.

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  7. Neoc

    I wonder...

    ...how many companies are secretly happy about the credit crunch? After all, it now gives them an excuse to downsize/fire people/close stores and not look like a bunch of profit-chasing bastards.

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  8. kain preacher

    how

    How is crappy city still around.

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  9. Tom

    @vincent

    That seems standard for the liquidator they use, jack up the price then give you a discount. If your lucky you can get it for regular price.

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  10. Tom Foale

    Good to Great?

    So another Good To Great company, as defined by Jim Collins in his book, bites the dust, alongside the recent demise of Fanny Mae as an independent company. Not a surprise really - the good to great execution strategies work only in stable industries in stable economic conditions. They say nothing about strategy or risk.

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