Circuit City goes into liquidation

[tsetsefly]

Circuit City Stores Inc., the nation’s second-biggest consumer electronics retailer, reached an agreement with liquidators on Friday to sell the merchandise in its 567 U.S. stores after failing to find a buyer or a refinancing deal.

http://www.msnbc.msn.com/id/28691963/?GT1=43001


THey couldn't refinance or find any buyers...

[Wild Style]

Re: Circuit City goes into liquidation

i wonder when gateway is going to announce their bankruptcy

[kingcopper]

Re: Circuit City goes into liquidation

Internet KILLED the stereo shop.

Internet KILLED the music shop.


No debts to be paid by our online friends!

[Spartacus]

Re: Circuit City goes into liquidation

the recording, radio and focus group industries together killed the music shop

The Internet just sounded bell and shouted "BRING OUT YOUR DEAD !!!" .

Or was that John Cleese? I always forget.

Internet KILLED the stereo shop.

Internet KILLED the music shop.


No debts to be paid by our online friends!

[kingcopper]

Re: Circuit City goes into liquidation

the recording, radio and focus group industries together killed the music shop

The Internet just sounded bell and shouted "BRING OUT YOUR DEAD !!!" .

Or was that John Cleese? I always forget.

Just gotta love the sheer efficiency of the internet. Can kill at "NO" cost!

[mcgurme]

Re: Circuit City goes into liquidation

Internet KILLED the stereo shop.

Internet KILLED the music shop.


No debts to be paid by our online friends!

It's more like:

The big box store killed the stereo shop
The internet killed the big box store

The one thing a local stereo shop would have that neither internet nor big box has: service. I hope the death of the titans leaves some space for local businesses like stereo shops to come back.

[Slimprofits]

Re: Circuit City goes into liquidation

[KGW]

Re: Circuit City goes into liquidation

I suspect that we are looking at a suicide. . .Circuit City was to retail electronics what Angelo was to real estate finance. They had the worst customer service policy of any retail store ever. The principals also ran one of the most egregious credit card banks ever. Good riddance.

[Jim Nickerson]

Re: Circuit City goes into liquidation

Does anyone have personal experience with liquidation of stocks in stores like Circuit City?

What type of markdowns might be available from the beginning sales tomorrow?

[Slimprofits]

Re: Circuit City goes into liquidation

Does anyone have personal experience with liquidation of stocks in stores like Circuit City?

What type of markdowns might be available from the beginning sales tomorrow?

Jim, I know for a fact that in December when the trouble with CC first became known publicly, their fire sale prices in Manhattan were still higher than the prices at Best Buy and P.C. Richards (a NY chain) for the same items.

Some of these stores are just overpriced to begin with. It was the same story with the Mervyn's chain here in California. It went bust a couple of months ago - but their liquidation prices were still higher than at Ross Stores and Walmart.

So check it out if you'd like, but I don't think you'll be seeing too many bargains. CC was always and in death is still a ripoff joint.

[bpr]

Re: Circuit City goes into liquidation

CC was always and in death is still a ripoff joint.

Their model simply became outdated. You can't pay commissions to an inexpert sales force and expect consumers to go along with it while competitors undercut you with a commission-less inexpert sales force or, worse yet, no sales force, just a website and a warehouse.

This might be that anticipated time when big ticket household items (refrigerators, washer/dryer, etc.) can be had for a bargain.

[tsetsefly]

Re: Circuit City goes into liquidation

Their model simply became outdated. You can't pay commissions to an inexpert sales force and expect consumers to go along with it while competitors undercut you with a commission-less inexpert sales force or, worse yet, no sales force, just a website and a warehouse.

This might be that anticipated time when big ticket household items (refrigerators, washer/dryer, etc.) can be had for a bargain.

agree, CC always seemed rundown and unkept, at least that the impression I have from the CC's i have been too...

A scenario I can actually see happening is when the internet will be blamed for closing stores, and what the blame will be, ie. tax internet sales or limit internet sales?

[dbarberic]

Re: Circuit City goes into liquidation

Does anyone have personal experience with liquidation of stocks in stores like Circuit City?

What type of markdowns might be available from the beginning sales tomorrow?

Typically, liquidations of inventory is handled not by the company, but by an outside firm that specializes in store closings. Once the outside firm takes over the store to liquidate it, the corporate office no longer has control of the pricing. The liquidator returns all pricing to MSRP and then starts a progression of mark downs in 10% increments until all inventory is sold. Because of the pricing structure returning to MSRP, prices are initially usually higher than other stores (e.g. Best Buy) or even the Circuit City price prior to the store going into liquidation. Its a suckers game where the large yellow and black "Store Liquidation Sale" signs draw people in who assume they are getting the best price.

If there is something that you are planning to pick up, you will need to watch it closely and hopefully the item will be in stock by time prices get to 50-60% off of MSRP.

[Jim Nickerson]

Re: Circuit City goes into liquidation

Typically, liquidations of inventory is handled not by the company, but by an outside firm that specializes in store closings. Once the outside firm takes over the store to liquidate it, the corporate office no longer has control of the pricing. The liquidator returns all pricing to MSRP and then starts a progression of mark downs in 10% increments until all inventory is sold. Because of the pricing structure returning to MSRP, prices are initially usually higher than other stores (e.g. Best Buy) or even the Circuit City price prior to the store going into liquidation. Its a suckers game where the large yellow and black "Store Liquidation Sale" signs draw people in who assume they are getting the best price.

If there is something that you are planning to pick up, you will need to watch it closely and hopefully the item will be in stock by time prices get to 50-60% off of MSRP.

Thanks for your insights. I went to the nearest CC this AM. and there were 10 people waiting for doors to open. I've considered buying a new laptop if price reduction was siginificant, and one there yesterday with AMD processors was off the display, and the one with Centrino's still there but price unchanged.

I noted some monitors that were off, apparently, <20% from what was shown to be recent price.

[c1ue]

Re: Circuit City goes into liquidation

Circuit City liquidations in November were both before Christmas and before the true extent of the retail collapse was proven.

This time around it is possible significant discounts will be available.

For Steve & Barry's: liquidations were 50% off in the first month, then on to 90% plus at the end.

Certainly the electronics have a higher actual cost to the store, but still...