Circuit City Now Files for Bankruptcy

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Circuit City: 1949-2008?​

If you've been on some of the tech blogs as of late, I'm sure you've read the stories about Circuit City circling the proverbial drain over the past few months. As one of the major retailers of electronics, software, games, music and movies its an interesting development. There had been talks of a Blockbuster buyout, but that had ultimately failed, and now the question of outright bankruptcy is being bookeneded by the closure of 155 stores nationwide.

  • Are you at all surprised?
  • Is your local store shutting down?
  • We're left with Best Buy and.... uh... Best Buy? Thoughts?

I'm not all that surprised, I've been watching the local operation slowly strangle itself out of a once promising existence over the past few years. Simply put, the store is out of the way (despite being on a main thoroughfare), too large for what little product they have, and the staff "help" is absolutely abysmal. Quite frankly, I'm shocked that the Grand Rapids location hasn't been chosen for an early death... But then again, I'm somewhat surprised that so many are being closed on the east side of the state as well.

As for being left with Best Buy, its a bit of a disappointment. Out of the two, yes, I've preferred the house of the yellow tag, but that never meant that it was the "better" option. As more big-box stores have gotten into electronics, I've found myself shopping at places like Target and Costco with an ever-watching eye for great deals, which is likely a cause of the Circuit City downfall. Furthermore, I'm sure that places like Office Max and Staples have been behind some of it too...

Nevertheless, its a sad day for tech store folks. The loss of Comp USA was a bit of a disappointment, I think this will end up being much the same.
 
I never shop these stores anymore, so no big loss to me. In my area, CC is just slightly better than BB. But, I despise both.

I prefer J&R.
 
I thought Blockbuster already bought CC?

CompUSA + CC would be funny, though, because before the CompUSA here went out of business it was right next door to CC.
 
Locally Circuit City got all kinds of screwy. They are hard to navigate and their prices are ridiculous.

Most of their Blu-Rays are in the $35 range. The perfect example is Polar Express 3-D on Blu-Ray. Best Buy had it for $14.99 during launch, Wal*Mart had it for $29.99, and Circuit City had it for $34.99.

Fortunately, Kentucky will still have HH Gregg to compete with Best Buy.
 
That leaves Best Buy and the big-box department stores in these parts, save the smaller specialty chains for electronics or the office-supply stores for computers (which are more mainstream in their offerings). Still, I'd rather give the local-grown Office Depot the business in that arena. Edit: There's still BrandsMart, if you can stand the circus.

That's a real shame, I've always had good customer service, lower prices, and a quite fair return policy at Circuit City, whereas Best Buy gives me the cold shoulder and has a horrible return policy...not to mention I don't know how they stay in business when Wal-Mart and Target kick their prices to the curb. The only upside is that Best Buy has a far better music selection (our local Circuit Citys all but eliminated them).

Online shopping is cheaper, but I admittedly make electronics/computing purchases out of immediate need and thus, on more of an impulse-but-low-price basis.
 
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Pupik
That's a real shame, I've always had good customer service, lower prices, and a quite fair return policy at Circuit City, whereas Best Buy gives me the cold shoulder and has a horrible return policy
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Completely agree with that statement. 👍

I established my own personal boycott of Best Buy 3 years ago. It was over a loophole in their return policy, and their staunch refusal to do anything to make it right. Long story short, I bought an open box item that I found was missing parts. I exchanged it for another, and it still did not work for my intended purpose. I tried to return it, but it was the day after the deadline, based on my ORIGINAL PURCHASE DATE OF THE OPEN BOX ITEM. :grumpy: The item was about $100.00, but it's the principle of the matter, to me. I talked to managers, made phone calls, did everything I thought necessary to make my point, and they still would not budge.

Since then, I've spent thousands of dollars at their direct competitors, including Fry's and Circuit City. Best Buy built a new store that's about 2 miles from my house, and I still drive to the competitor that's closer to 10 miles away when making these purchases. Now, the Circuit City in that area is closing, so I'll need to go even further out of my way - And I will. Even if it means buying online and paying more for shipping or waiting longer to get the product.

It's too bad that the cost of doing business honestly or the consumer habit of going across the street over a relatively small amount of money puts good companies out of business and leaves us with second rate options.
 
I'm neither surprised nor disappointed by the news. I'd also have the same reaction if Best Buy, Fry's, Comp USA, Microcenter, (fill in the blank) chain of stores met the same fate.


For me, when it comes to electronics, I rarely buy anything from a bricks & mortar store. I can shop faster, make accurate price comparisons, and get a vastly wider variety of products at almost always lower prices than any B&M store, and that's even if they charge for shipping. In addition I save on sales tax, gas that I would have to use to get to and from a B&M store, and I get it delivered to my home.

As for getting advice and support, the day I rely on a B&M part time minimum wage employee to give me advice on products is the day I hang it up. ;)

Seriously though, most highly respected online retailers offer a vast amount of information on their products, and many offer excellent support, including free return policies that even include free shipping.

If anything, my wife and I find we are purchasing more and more different types of products online, and at least for me, I rarely ever go to B&M stores. My wife still loves the outlets and boutique stores, but as far as electronics, books, games, toys, etc - we buy almost everything online. 👍

The single exception has been Costco, which has set a high standard on price and service, that very few B&M sotres have been able to match.
 
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It is now official:

Circuit City Files for Bankruptcy

Gizmodo
November 10: Files for Chapter 11 bankruptcy protection. Lists $3.4 billion in assets and $2.32 billion in liabilities, owes HP $119 million and Samsung $116 million. It lost $5 billion in stock market value in just two years.
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That is interesting, but working for a company that went through Bankruptcy business over the summer (Steve & Barry's), I fully understand how terrifying it can be for their employees.

Although I do find it interesting that some of you have a treasure-trove of other options for electronics, something that is otherwise pretty limited here. We've got the big box stores (Best Buy, Wal*Mart, Target, etc), but the small operations have otherwise been pushed out or never existed outright. Not that I'm all that surprised, we usually get the shaft when it comes to better alternatives (in anything) around here anyway.
 
buickgnx88
I disagree, I actually like Best Buy.
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I agree, but I may be biased because Best Buy has been known to let me stand there and take on all challengers to their Gran Turismo demo setups in the past.

It always started with some little kid walking up and saying, "Winner gets to play?"

Anyway, I am hoping to catch some sweet liquidation deals if CC goes that way.

Looks like Sony was smart to quit giving them stuff. It is sad though, they were the store I got my Wii from. Of course, this now means that I get to sleep in an extra hour the next time I decide to show up at a store opening hours in advance to get a hot-ticket item.
 
We don't have a Best Buy over here where I live, only Circuit City, but I've gotta say, while I go there almost weekly, I've only bought something 5 times or so.

Whenever I've found something there I liked, I've always found it online for 2 times cheaper. Their prices are WAY too high.
 
I'm not too happy either and the Circuit City stores will only last intill Christmas in my area.
 
Reventón;3213070
Not too unhappy. The only thing I'm waiting for are the "Store Closing Sales".
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Be warned. The so called "sale" prices are higher than the normal set prices by CC. I don't know why they do this, it just drives people away.

Please dont ask the people inside when their last day is, they dont know and are tired of hearing people asking them.
 
The store closest to me is not closing, which I found surprising. Still, I don't think I'll be shopping there this holiday season, much less next week, as most of my stuff normally comes from Best Buy. I'm disappointed that competition is dropping like flies, but lets be honest, much of this is coming from the poor decision making from the top-down at Circuit City.
 
YSSMAN
The store closest to me is not closing, which I found surprising. Still, I don't think I'll be shopping there this holiday season, much less next week, as most of my stuff normally comes from Best Buy. I'm disappointed that competition is dropping like flies, but lets be honest, much of this is coming from the poor decision making from the top-down at Circuit City.
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Don't worry, Best Buy still has plenty of competition, they just don't have those fancy walls made out of brick and mortar.
 
FoolKiller
Don't worry, Best Buy still has plenty of competition, they just don't have those fancy walls made out of brick and mortar.
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Precisely.

There is plenty of competition out there, which is why in most cases, online shopping gives consumers more choices, lower prices, more convenience, and better service than most large B&M retail stores.

B&M retailers frankly don't fair well when facing true competition. Their traditional model of business is predicated on luring customers in with exclusives and sales, and then getting them to buy marked up products while they are in the stores with the knowledge that at least in the past customers may not realize that another store may have the same product for less and or offer more choices and better terms and service. Basically, traditional B&M stores often count on customers who either don't care or don't know what all their options are.

This model of business worked great for many years. Then came the mobile phone, and the B&M retail market started to see some customers doing price comparisons while shopping, but at the end of the day, it still meant having to drive to another store, so the impact wasn't all that big.

The internet on the other hand has changed everything, and really for the first time consumers, from the convenience of their home or office, or anywhere they are if they have a mobile device with internet access, could do quick price comparisons as well as compare terms and service of hundreds of different retailers, thus increasing competition among both traditional and modern retailers - which has resulted in more choices, better prices, and better service.

Some B&M retailers like Costco understand and welcome competition, and thus have been extremely successful. Others, who continue to rely on the old B&M retail model, are finding it harder and harder to find customers who can be lured in with sales, and talked into buying products at higher prices, despite not offering any additional value or services that they can get else where.

Circuit City was just such a company, and frankly deserves the fate it is in.
 
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I am not surprised at all. CC seems like they have always been in the shadow of Best Buy.
I cant believe Blockbuster Video is still in business. If any place needs to go out of business its that company.
 
Digital-Nitrate
B&M retailers frankly don't fair well when facing true competition. Their traditional model of business is predicated on luring customers in with exclusives and sales, and then getting them to buy marked up products while they are in the stores with the knowledge that at least in the past customers may not realize that another store may have the same product for less and or offer more choices and better terms and service. Basically, traditional B&M stores often count on customers who either don't care or don't know what all their options are.
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Best Buy is guilty of this as well. Too often have they had a deal in the Sunday paper but they only have enough stock in to last until about noon on Sunday. Then when you ask an associate if they have more they happily point you to a different brand/model that will cost you much more. The bait and switch drives me insane. So, now I don't go to them for a sale item unless I can get it online, but in that case I can price compare and usually wind up buying it elsewhere.

Now, Best Buy is really good about not annoying me and letting me do whatever while I am in there so I do enjoy just going in and seeing what they have available. Most of my Best Buy purchases have come from impulse buys.

Circuit City on the other hand annoys me to no end as they keep asking if they can help, but then when I finallyu decide to buy something they are in their little group of three talking and not noticing me. At Best Buy they will be talking but if I walk up someone tends to stop the conversation and asks me if they can help. Throw on top of that Circuit City's Blu-Ray prices of $35 or more for what is $30 or less anywhere else and it has never been pleasent around here. I realize this could be regional though.

CAMAROBOY69
I am not surprised at all. CC seems like they have always been in the shadow of Best Buy.
I cant believe Blockbuster Video is still in business. If any place needs to go out of business its that company.
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I know of a couple of stores locally that have closed, but then so are Hollywood Video and Movie Warehouse. I think the B&M video rental stores are getting smaller and smaller. They will probably just run fewer small stores while doing a lot of business online. If they don't offer an online deal then they will just go under.

I haven't stepped foot in a Blockbuster in years. Netflix and Gamefly are all I need. Digital download rentals haven't been too shabby either. I just wish their security was loosened a bit.
 
Yeah we actually had 2 Blockbusters close down and Hollywood video. Their prices were just rediculous. Family video has always been the best rental store in our area plus they give the option of 1,2 or 5 nights. You can also get half off for a month which is well worth it. Its a no brainer that Fimily video is still doing real well in our area. Blockbuster charging $7.99 for a game rental is rediculous.
 
FoolKiller
$7.99?!?!?!?!?!?!? Two rentals and you have your Gamefly subscription.
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Exactly. Blockbuster is a huge rip off. The only thing they have going for them is sometimes they have decent trade in rates compared to Gamestop.
 
The funny thing is that Blockbuster was talking about buying Circuit City, which would have been an absolute disaster. Two zombie brands coming together does not make a functional unit...

I cannot stand Blockbuster, and I'm still waiting for the local one to fall by the wayside. Since switching to Netflix, I've never looked back. I'm seriously considering a GameFly subscription, but I tend to buy games and play them to death, so I'm content with the occasional purchases.

Either way, this holiday season, I can't say I'll be hovering around Circuit City. Unless they're willing to give me absurdly good deals on "things" (whatever they may be), there isn't any reason to enter the big house of red.

=====

EDIT:

Best Buy is in "meltdown" mode as well, which at least in my opinion is not a good sign. I still plan on picking up a few things there in the not-too-distant future, but nevertheless, its not a very good picture that they're sending us.
 
Circuit City Liquidation Deals Update for 2/15
(source)

25% Off:
  • LCD TVs
30% Off
  • All Plasma TVs
  • Home Audio
  • Printers
  • Scanners
  • Digital Cameras
40% Off
  • CDs & DVDs
  • GPS Units
  • PC Software
  • PC Accessories
50% Off:
  • All Furniture
  • Select Mobile Audio & Accessories
Reports of 30-40% Off Video Game Accessories (point cards/etc...)
 
I went back about a week or 2 ago and there really is nothing left worth buying. Still quite a few TVs left.
 
Just two more days...


All Circuit City stores to permanently close on Sunday, March 8.
 

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