Circuit City to shut down

[Mark Kerr]

NEW YORK (CNNMoney.com) -- Bankrupt electronics retailer Circuit City Inc. said Friday it has asked for court approval to close its remaining 567 stores and sell all its merchandise.

The company said it has 30,000 employees.

In a filing with the U.S. Bankruptcy Court for the Eastern District of Virginia, Circuit City - the No. 2 electronics retailer after Best Buy - said it had reached an agreement with four companies to start the liquidation process.

The company said it the sale would begin Saturday and run until March 31, pending court approval.

[LurkerNoMore]

I never liked Circuit City.  They always seem to have crappier products at higher prices than places like Best Buy or CompUSA.

Wasn't too long ago they fired all their top sales people.  Gave them a choice to work for lower wages or be replaced with someone fresh off the street for the same salary.

They also make every blatant attempt possible to rip you off as well for hidden charges and shit too.

[Oldschool Flip]

I never liked Circuit City.  They always seem to have crappier products at higher prices than places like Best Buy or CompUSA.

Wasn't too long ago they fired all their top sales people.  Gave them a choice to work for lower wages or be replaced with someone fresh off the street for the same salary.

They also make every blatant attempt possible to rip you off as well for hidden charges and shit too.

I worked for them as a sales person and a manager. One day we (sales people) were all informed that anyone making over $15.00 and hour (based on sales commission/time worked) were going to be "laid off". You got a severance package. Some like myself, were asked to stay on as managers. I stayed on with them as a manager till 2004 when my daughter was born. IMO the demise happened when the good sales people, who had enthusiasm and a willingness to work because they were on commission and since their income was dependent on product movement, were sent off. Sales production dropped dramatically.

[OzmO]

I worked for them as a sales person and a manager. One day we (sales people) were all informed that anyone making over $15.00 and hour (based on sales commission/time worked) were going to be "laid off". You got a severance package. Some like myself, were asked to stay on as managers. I stayed on with them as a manager till 2004 when my daughter was born. IMO the demise happened when the good sales people, who had enthusiasm and a willingness to work because they were on commission and since their income was dependent on product movement, were sent off. Sales production dropped dramatically.

Don't you think Best Buy had alot to do with it too?

Bestbuy stores are nicer and set up better and i think their prices are at least perceived as cheaper.

[LurkerNoMore]

Yeah, it was in the paper here about their tactic of laying off all their sales people and then immediately offering them first choice in being hired back for the exact same position but at a much less rate of pay.

[OzmO]

Yeah, it was in the paper here about their tactic of laying off all their sales people and then immediately offering them first choice in being hired back for the exact same position but at a much less rate of pay.

They must have had to compete with lower prices at other outlets namely bestbuy who pays their people about $10/hour   At least that what it was about 5 years ago when a friend of mine worked there.

It sucks. 

That's what large retail outlets like Walmart do to smaller companies and small businesses.

[tu_holmes]

OldSchool,

I too worked for Circuit city... IT back when it was profitable.

I remember when they got rid of the commission people and went to common floor people for sales, Ala Best Buy.

Huge mistake... People went to CC because they didn't know what they wanted, they paid for the premium then because the sales staff knew EVERYTHING about a product. You guys were trained by the manufacturer for goodness sake.

They saw Best Buy and they said, oh, let's do that... Not even thinking about how people who liked the Best Buy model wouldn't shop at the City, and vice versa.

Also, they stopped selling major appliances... another huge factor. They had great profits on things like Dish Washers and Refrigerators.

That's going to hurt Richmond, Va. immensely.

Yeah, it was in the paper here about their tactic of laying off all their sales people and then immediately offering them first choice in being hired back for the exact same position but at a much less rate of pay.

True, but again, they shouldn't have competed with best buy on that level... They should have continued to provide the sales staff who knew everything, worked on commission and sold their asses off instead of a bunch of teenage kids making 10 bucks an hour.

Who has an incentive to sell at 10 bucks an hour? Really?

They must have had to compete with lower prices at other outlets namely bestbuy who pays their people about $10/hour   At least that what it was about 5 years ago when a friend of mine worked there.

It sucks. 

That's what large retail outlets like Walmart do to smaller companies and small businesses.

It's not always about cheaper... There is a very big market for knowledge in sales... Circuit City just decided they didn't want to bother with it... See where they are now.

[Mark Kerr]

Fellas, this just adds 30,000 people to the unemployment lines. I don't think they ran themselves out of business by cutting their commission sales people. You also have to add in Costco, Sams Club and Walmart. The distributors have no loyalty to the retailers any longer. Costco, Sams Club and Walmart carry the same TV's that Ciurcut City carried at much lower prices.

[tu_holmes]

Fellas, this just adds 30,000 people to the unemployment lines. I don't think they ran themselves out of business by cutting their commission sales people. You also have to add in Costco, Sams Club and Walmart. The distributors have no loyalty to the retailers any longer. Costco, Sams Club and Walmart carry the same TV's that Ciurcut City carried at much lower prices.

Think about how it affects the Richmond Virginia economy... Not a lot going for it before... Now look at it?

This, on top of Land America... Richmond is having a meltdown of epic proportions now.

[Dos Equis]

Don't you think Best Buy had alot to do with it too?

Bestbuy stores are nicer and set up better and i think their prices are at least perceived as cheaper.

Survival of the fittest. 

[tonymctones]

bad news indeed i really feel for those ppl that are going to be laid off

I never really thought best buy was any cheaper in all honesty, i think they marketed themselves better and the stores themselves appeared nicer but as far as prices go i thought they where pretty comprable.

[OzmO]

Survival of the fittest. 

The problem with that is, as these large companies gobble up more and more of the market, they retard other competition to the point that they nearly create a form of corporate communism in a sense.

Only place to buy many products will be Walmart and Best buy. 

[Dos Equis]

The problem with that is, as these large companies gobble up more and more of the market, they retard other competition to the point that they nearly create a form of corporate communism in a sense.

Only place to buy many products will be Walmart and Best buy. 

That's certainly possible, but Wal-Mart is a great place to shop.  Good prices.  That's why they're all over the place.  I doubt they can completely dominate the market, because the stores are too big.  We only have three on Oahu to service about 900,000 people.  Still plenty of customers for K-Mart, Longs, Walgreens (which just entered the market), and Don Quixote (one of my favorites). 

[240 is Back]

recession is all in your Circuits, bitches.

[tu_holmes]

That's certainly possible, but Wal-Mart is a great place to shop.  Good prices.  That's why they're all over the place.  I doubt they can completely dominate the market, because the stores are too big.  We only have three on Oahu to service about 900,000 people.  Still plenty of customers for K-Mart, Longs, Walgreens (which just entered the market), and Don Quixote (one of my favorites). 

WTF?

Wal-Mart is crap... No wonder we don't see eye to eye.

[Dos Equis]

WTF?

Wal-Mart is crap... No wonder we don't see eye to eye.

Oh shush.  I shop there all the time.    I'm going there today.  I need a new bathroom radio.  My wife and kids keep messing with mine, changing the station, etc.    

I already have my speech ready when I bring it home today:

This is my radio.
There are many like it, but this one is mine . . . .

[tonymctones]

That's certainly possible, but Wal-Mart is a great place to shop.  Good prices.  That's why they're all over the place.  I doubt they can completely dominate the market, because the stores are too big.  We only have three on Oahu to service about 900,000 people.  Still plenty of customers for K-Mart, Longs, Walgreens (which just entered the market), and Don Quixote (one of my favorites). 

actually an independent study found that target was actually cheaper then walmart on average, thing is walmart advertise very well and drops prices on certain products while keeping others relatively high.

[Dos Equis]

actually an independent study found that target was actually cheaper then walmart on average, thing is walmart advertise very well and drops prices on certain products while keeping others relatively high.

We don't have Target.  The stuff I buy there is less expensive than most other stores. 

[tu_holmes]

Oh shush.  I shop there all the time.    I'm going there today.  I need a new bathroom radio.  My wife and kids keep messing with mine, changing the station, etc.    

I already have my speech ready when I bring it home today:

This is my radio.
There are many like it, but this one is mine . . . .

I don't like their unfair business practices that they get away with... Plus their willingness to screw over employees and things of that nature.

I hate Wal-Mart

[tonymctones]

We don't have Target.  The stuff I buy there is less expensive than most other stores. 

IC i actually still go to walmart more often then target simply b/c id have to go to the otherside of the freeway to get to target and walmarts on my side...LOL just pure laziness.

[Dos Equis]

I don't like their unfair business practices that they get away with... Plus their willingness to screw over employees and things of that nature.

I hate Wal-Mart

Nothing unfair about providing jobs for thousands of people across the country.  If employees don't like their practices they should go work somewhere else. 

Meanwhile, I'll continue to save money as a "Wal-Mart shopper." 

[Dos Equis]

IC i actually still go to walmart more often then target simply b/c id have to go to the otherside of the freeway to get to target and walmarts on my side...LOL just pure laziness.

Nah.  That's called convenience. 

[Soul Crusher]

Don't you think Best Buy had alot to do with it too?

Bestbuy stores are nicer and set up better and i think their prices are at least perceived as cheaper.

Circuit City was always a hassle to shop at. 

[LurkerNoMore]

Walmart is crappy and has subpar products in there.

If you are just going for a few things around the house and supplies, that is fine.  But I would never even consider doing a serious purchase like a plasma or computer from that place.

[Soul Crusher]

Walmart is crappy and has subpar products in there.

If you are just going for a few things around the house and supplies, that is fine.  But I would never even consider doing a serious purchase like a plasma or computer from that place.

Circuit City always had the most indifferent employees and salespeople I ever saw. 

The checkout always took forever even if there was only two people on line.

Horrible shopping experience.