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Circut City Sale….. Is It Really Worth the Headache

headacheThe Circuit City liquidation sale is now in full swing, only a few days after the company of 60 years finally declared bankruptcy.  Many items are marked 30% off, such as cables and furniture, while the most desirable items are not offered at such great savings.  Several items such as mp3 players, televisions, home theater design, gaming consoles and computers are only marked down 10%.  While Circuit City has turned over operation management of the remaining 500 plus stores to four liquidation companies, it can be expected the heftiest sale prices will not be revealed until the last minute.

Many of these remaining Circuit City stores are attracting lengthy lines of eager customers to what is supposed to be a grand liquidation sale.  Some of these shoppers are calm and some are as hasty as if the store will vanish into thin air within moments.  It seems that the energy for scooping up the deals comes to a halt once the disappointing reality hits about the actual savings.  According to these shoppers and other consumers who have publicly voiced their opinions, the liquidation is not all it should be and many are glad to see the company go under.  Shoppers know they can receive better deals on electronics from other distributors, retail electronic stores, or from an audio video dealer.

A concern that can be addressed here and now is whether during this liquidation the following will remain valid: extended warranties, gift cards, and the refund/exchange policy.  Extended warranties will be honored due to the fact that they are managed by an outside vendor.  Gift cards can be used as well during the remainder of the sale, but of course, will be invalid once the company stores are all officially closed.  Spend them if you have them.  For any merchandise purchased from January 16 forward, there are no refunds or exchanges allowed, but if purchased prior to this date, the standard 14-day refund/exchange policy applies.

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January 29, 2009 Posted by | Industry News | , , , , , , , , , , , , , , , , , , , , , | Leave a comment

Circut City Is Closing it’s Doors

circuit-city_exterior-store-frontLong-lived consumer electronics store, Circuit City began the process of closing its doors as of Friday, January 16, 2009, when bankruptcy judge Kevin Huennekens approved the liquidation plan. The sales will begin at a 10-30% discount for the liquidation, which should last through March before finally closing the doors.

Circuit City has made attempts to save the company through layoffs of high-paid employees, changes in management, seeking potential buyers, and opening small concept stores. Earlier in 2008, Blockbuster Inc. made an offer of$1 billion to buy Circuit City, but the offer was withdrawn in July. Two other interested potential buyers were Mexican billionaire Ricardo Salinas Pliego and the Golden Gate Capital private equity firm, who were both interested in operating the company at a reduced size of 180 to 300 stores. In the end, these efforts have not been successful in preserving the future of the company.

Circuit City has struggled ever since opening of electronic guru, Best Buy Co., whose stock market shares rose +2.20 on Friday, growing to 29.34 for an 8% total increase. It is also not surprising that this closure for the famous electronics store follows the worst retail holiday season since 1969. Consumers are voicing their opinions of Circuit City in public forums and media to the tune that this closure does not come as a surprise. Many think that Circuit City might still be in business if they weren’t so overpriced in comparison to the competition. Even during the liquidation sale, many items are only discounted 10%. These prices are not even coming close to beating prices at other electronics stores and wholesale distribution stores who also sell products from home theater design as well as home theater installation.

By the completion of Circuit City’s closure, 567 US retail stores and 34,000 jobs will be lost. In Canada, the outcome is uncertain for the765 retail stores and dealer outlets.

January 22, 2009 Posted by | Industry News | , , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment