Circuit City to liquidate ALL stores
Moderator: S2k Moderators
Circuit City to liquidate ALL stores
Circuit City to liquidate remaining US stores
By MICHAEL FELBERBAUM and VINNEE TONG – 6 hours ago
Circuit City Stores Inc. says it has reached an agreement with liquidators to sell the merchandise in its 567 U.S. stores after failing to find a buyer or a refinancing deal.
The second-biggest electronics retailer in the nation says in court papers it has appointed Great American Group LLC, Hudson Capital Partners LLC, SB Capital Group LLC and Tiger Capital Group LLC as liquidators.
Calls to the Richmond, Va.-based company and the liquidators were not immediately returned.
Circuit City filed for Chapter 11 bankruptcy protection in November. U.S. Bankruptcy Judge Kevin Huennekens gave the company permission to liquidate if a buyout was not achieved.
In other news, the first of the big newspapers have filed for Chapter 11 backurptcy. The Star Tribune in Minneopolis Minnesota has filed for Chapter 11.
By MICHAEL FELBERBAUM and VINNEE TONG – 6 hours ago
Circuit City Stores Inc. says it has reached an agreement with liquidators to sell the merchandise in its 567 U.S. stores after failing to find a buyer or a refinancing deal.
The second-biggest electronics retailer in the nation says in court papers it has appointed Great American Group LLC, Hudson Capital Partners LLC, SB Capital Group LLC and Tiger Capital Group LLC as liquidators.
Calls to the Richmond, Va.-based company and the liquidators were not immediately returned.
Circuit City filed for Chapter 11 bankruptcy protection in November. U.S. Bankruptcy Judge Kevin Huennekens gave the company permission to liquidate if a buyout was not achieved.
In other news, the first of the big newspapers have filed for Chapter 11 backurptcy. The Star Tribune in Minneopolis Minnesota has filed for Chapter 11.
0 likes
Re:
gtalum wrote:I'm going hunting for a 52" LCD HDTV tomorrow.
Well, be careful. . The liquidator, they hired, has history of marking up the prices to the highest list price and then applying the discounts (30%, 50% etc). . . so seems like a great deal might not when you across the street to Walmart, Costco or Best Buy. . .
0 likes
- somethingfunny
- ChatStaff
- Posts: 3926
- Age: 37
- Joined: Thu May 31, 2007 10:30 pm
- Location: McKinney, Texas
- TexasStooge
- Category 5
- Posts: 38127
- Joined: Tue Mar 25, 2003 1:22 pm
- Location: Irving (Dallas County), TX
- Contact:
- Stephanie
- S2K Supporter
- Posts: 23843
- Age: 63
- Joined: Thu Feb 06, 2003 9:53 am
- Location: Glassboro, NJ
Re: Circuit City to liquidate ALL stores
I've never liked Circuit City's layout of the stores - they were like "rooms".
I feel badly for the employee's. One of Marty's motorcycle buddy's sons worked for them.
I feel badly for the employee's. One of Marty's motorcycle buddy's sons worked for them.

0 likes
- somethingfunny
- ChatStaff
- Posts: 3926
- Age: 37
- Joined: Thu May 31, 2007 10:30 pm
- Location: McKinney, Texas
Re:
gtalum wrote:We checked it out yesterday, and the "deals" weren't very good. People were buying crap for the same price they could have paid at Best Buy right down the street. If I'm going to buy something with no possibility of return, it has to be a fantastic deal.
This was the way things went with the last liquidation. Wait a few weeks. Everything remaining (and this time it will take longer because Circuit City's got entire warehouses to empty) will be cut by 70-80% once a certain threshhold is reached. You'll see the "store closing" commercials replaced with a new version advertising the further price cuts. When you see that commercial, camp out before they open. Or, make friends with one of the employees and see if he'll tip you off to when the additional price cuts are about to happen.
0 likes
- MGC
- S2K Supporter
- Posts: 5899
- Joined: Sun Mar 23, 2003 9:05 pm
- Location: Pass Christian MS, or what is left.
Re: Circuit City to liquidate ALL stores
There were no deals at the Circuit City in Gulfport today. I've been eyeing a 42 inch plasma TV. Best Buy has it for under 800 bucks but it was 999 at CC today with a 10% discount and no return policy. What a rip off . No wonder CC has gone broke......MGC
0 likes
- vbhoutex
- Storm2k Executive
- Posts: 29112
- Age: 73
- Joined: Wed Oct 09, 2002 11:31 pm
- Location: Cypress, TX
- Contact:
Re: Circuit City to liquidate ALL stores
Last time I was in a Circuit City I was looking for a 52" LCD HDTV. The one they showed me didn't even have a decent picture and I commented on it. Their response was "that's only because of our hook up here in the store". I told them I wouldn't buy a TV from them if I was paid if that was how they displayed their TVs for sale. They said 'OK" and turned around and walked off. To say the least I left the store. The liquidation does not surprise me nor will I be part of it
0 likes
-
- Professional-Met
- Posts: 11430
- Age: 35
- Joined: Sat Dec 24, 2005 9:00 pm
- Location: School: Florida State University (Tallahassee, FL) Home: St. Petersburg, Florida
- Contact:
- somethingfunny
- ChatStaff
- Posts: 3926
- Age: 37
- Joined: Thu May 31, 2007 10:30 pm
- Location: McKinney, Texas
Re: Circuit City to liquidate ALL stores
Circuit City stopped paying their sales employees commission in 2002. A few years later, they "purged" most of their highest-paid, most experienced employees citing costs and hired teenagers. This is where it got them.
Serves them right I'd say.
Serves them right I'd say.
0 likes
- gtalum
- S2K Supporter
- Posts: 4749
- Age: 49
- Joined: Tue Sep 07, 2004 3:48 pm
- Location: Bradenton, FL
- Contact:
As a business owner myself, I find it mystifying when companies lay off their best paid commissioned salespeople. They look only at the bottom line ("Hey that guy made $100,000 last year! I can pay a new guy $30,000!"), ignoring the fact that to get that $100,000, the salesman likely sold a million dollars worth of stuff, and the guy making $30k won't sell half that.
Personally, I love to cut big commission checks to my sales reps, because that means I'm making money.
Personally, I love to cut big commission checks to my sales reps, because that means I'm making money.
0 likes
- Stephanie
- S2K Supporter
- Posts: 23843
- Age: 63
- Joined: Thu Feb 06, 2003 9:53 am
- Location: Glassboro, NJ
Re:
gtalum wrote:As a business owner myself, I find it mystifying when companies lay off their best paid commissioned salespeople. They look only at the bottom line ("Hey that guy made $100,000 last year! I can pay a new guy $30,000!"), ignoring the fact that to get that $100,000, the salesman likely sold a million dollars worth of stuff, and the guy making $30k won't sell half that.
Personally, I love to cut big commission checks to my sales reps, because that means I'm making money.
My husband is a sales rep for a manufacturer. It always seems like the focus is on taking away from the sales rep first to cut costs and save money. It's like cutting off their nose to spite their face. Most of the time it bites the company in the butt.
0 likes
Re: Circuit City to liquidate ALL stores
http://money.cnn.com/2009/01/23/news/co ... /index.htm
Little secrets of 'out-of-business' sales
Do 'closeout' sales mean the lowest prices? Not always. And where did all that extra merchandise come from?
By Parija B. Kavilanz, CNNMoney.com senior writer
Last Updated: January 23, 2009: 5:27 PM ET
NEW YORK (CNNMoney.com) -- They're seen as either big-time bargains or big-time scams. What really goes on at a "going-out-of-business" sale is something in between, according to experts.
"Consumers think this is the time for bargains. That's not true," said George Whalin, president and CEO of Retail Management Consultants.
Thousands of retail stores are expected to disappear in 2009. But most big chains don't run those out-of-business sales themselves - Linens 'N Things, Whitehall Jewelers and, most recently, Circuit City, all hired liquidation firms to handle the process for them.
The liquidator buys the merchant's inventory and sets final clearance sales. They guarantee the store's creditors a payment upfront, and need to sell enough merchandise to recoup money for themselves.
"Would I love to offer a 60% discount and be out in two weeks? Yes. But it's not likely," said Jim Schaye, CEO of Hudson Capital Partners LLC, one of four firms managing the liquidation of electronic retailer Circuit City.
He said he and the other liquidators needed a "fairly sizeable" recovery in order to help Circuit City repay its creditors.
"We want to make sure everything is fairly priced," he said. "Do we get it right every time? No."
Because the liquidators don't want to lose money, it's not uncommon for clearance sales to begin at 10% to 30% off for the first few weeks, with deeper discounts staggered over the period closer to the end of the closeout sale.
However, Whalin said liquidators sometimes set those discounts based on manufacturers' prices - which can be 10% to 15% higher - rather than the price at the store when it closed.
Consequently, he said, consumers could end up paying more than they would have just before the "out-of-business sales" signs went up.
"This isn't necessarily right. It's almost a scam and there's nothing illegal about it," said Marshal Cohen, chief retail analyst with NPD Group. "Buying at a liquidation really is caveat emptor."
Cohen's suggestion to consumers: "You'll get the absolute best prices a week before [a retailer's] liquidation sale start." Assuming you can get to the liquidating store ahead of the sale.
Andy Gumaer, CEO of Great America Corp., which also is handling Circuit City's liquidation, said his company is setting discounts off the store's price prior to liquidation. He said he would honor prices in Circuit City's final sales circular.
Liquidators looking to make a few extra bucks sometimes sneak in goods that aren't part of the merchant's original inventory and add it to the mix, according to Whalin.
"This happens frequently in furniture liquidation sales," he said.
Hudson Capital's Schaye, who was involved in closing out Mervyns and Linens 'N Things stores, said he's aware of stores that added merchandise, but that he personally "doesn't like the practice."
Cohen said liquidators also go all out to make products less identifiable as "refurbished" or "previously opened."
"Just be aware of that because most liquidation sales are final," Cohen said.
One thing common to liquidation sales is that the discounts grow as the liquidators near the deadline for closing the stores.
"Anyone who has looked at liquidation sales knows that they are staggered over time," said Edgar Dworksy, a consumer advocate and editor of Consumerworld.org. "This isn't new."
He advised consumers to do their research. "Is a 10% discount at Circuit City better than anything else out there? Don't buy if it's not because you have zero percent return rights [in a liquidation]," he warned.
In general, Dworsky cautioned that he wouldn't "put anything past liquidators" when it comes to "playing a game with pricing."
Gumaer's advice to bargain hunters is that they have to decide themselves when to bag a deal.
"You have to take a chance. You can wait for better discounts, but the product may not be there," he said. "In truth, consumers dictate the discounts. If products aren't selling, we'll go deeper."
First Published: January 23, 2009: 3:55 PM ET
Little secrets of 'out-of-business' sales
Do 'closeout' sales mean the lowest prices? Not always. And where did all that extra merchandise come from?
By Parija B. Kavilanz, CNNMoney.com senior writer
Last Updated: January 23, 2009: 5:27 PM ET
NEW YORK (CNNMoney.com) -- They're seen as either big-time bargains or big-time scams. What really goes on at a "going-out-of-business" sale is something in between, according to experts.
"Consumers think this is the time for bargains. That's not true," said George Whalin, president and CEO of Retail Management Consultants.
Thousands of retail stores are expected to disappear in 2009. But most big chains don't run those out-of-business sales themselves - Linens 'N Things, Whitehall Jewelers and, most recently, Circuit City, all hired liquidation firms to handle the process for them.
The liquidator buys the merchant's inventory and sets final clearance sales. They guarantee the store's creditors a payment upfront, and need to sell enough merchandise to recoup money for themselves.
"Would I love to offer a 60% discount and be out in two weeks? Yes. But it's not likely," said Jim Schaye, CEO of Hudson Capital Partners LLC, one of four firms managing the liquidation of electronic retailer Circuit City.
He said he and the other liquidators needed a "fairly sizeable" recovery in order to help Circuit City repay its creditors.
"We want to make sure everything is fairly priced," he said. "Do we get it right every time? No."
Because the liquidators don't want to lose money, it's not uncommon for clearance sales to begin at 10% to 30% off for the first few weeks, with deeper discounts staggered over the period closer to the end of the closeout sale.
However, Whalin said liquidators sometimes set those discounts based on manufacturers' prices - which can be 10% to 15% higher - rather than the price at the store when it closed.
Consequently, he said, consumers could end up paying more than they would have just before the "out-of-business sales" signs went up.
"This isn't necessarily right. It's almost a scam and there's nothing illegal about it," said Marshal Cohen, chief retail analyst with NPD Group. "Buying at a liquidation really is caveat emptor."
Cohen's suggestion to consumers: "You'll get the absolute best prices a week before [a retailer's] liquidation sale start." Assuming you can get to the liquidating store ahead of the sale.
Andy Gumaer, CEO of Great America Corp., which also is handling Circuit City's liquidation, said his company is setting discounts off the store's price prior to liquidation. He said he would honor prices in Circuit City's final sales circular.
Liquidators looking to make a few extra bucks sometimes sneak in goods that aren't part of the merchant's original inventory and add it to the mix, according to Whalin.
"This happens frequently in furniture liquidation sales," he said.
Hudson Capital's Schaye, who was involved in closing out Mervyns and Linens 'N Things stores, said he's aware of stores that added merchandise, but that he personally "doesn't like the practice."
Cohen said liquidators also go all out to make products less identifiable as "refurbished" or "previously opened."
"Just be aware of that because most liquidation sales are final," Cohen said.
One thing common to liquidation sales is that the discounts grow as the liquidators near the deadline for closing the stores.
"Anyone who has looked at liquidation sales knows that they are staggered over time," said Edgar Dworksy, a consumer advocate and editor of Consumerworld.org. "This isn't new."
He advised consumers to do their research. "Is a 10% discount at Circuit City better than anything else out there? Don't buy if it's not because you have zero percent return rights [in a liquidation]," he warned.
In general, Dworsky cautioned that he wouldn't "put anything past liquidators" when it comes to "playing a game with pricing."
Gumaer's advice to bargain hunters is that they have to decide themselves when to bag a deal.
"You have to take a chance. You can wait for better discounts, but the product may not be there," he said. "In truth, consumers dictate the discounts. If products aren't selling, we'll go deeper."
First Published: January 23, 2009: 3:55 PM ET
0 likes
- somethingfunny
- ChatStaff
- Posts: 3926
- Age: 37
- Joined: Thu May 31, 2007 10:30 pm
- Location: McKinney, Texas
Re: Circuit City to liquidate ALL stores
Just wait a few more weeks. They WILL get desperate. When I went a few weeks ago to our local store (it went with the earlier round of closings) they were even selling the shelving units, and everything left was at 80% off. Of course all they had left were speaker wires, digital photo printers, and other things that would be completely useless to me. The key is to go AS SOON as the commercials mention that their liquidator has further reduced prices. That's when you'll get that 52" Plasma for 60% off.
0 likes
A few years ago when I first started looking at HDTV's, Circuit City had the best salespeople in the area. They hooked up a 32" HDTV as a monitor on a Windows machine and the salesperson was very helpful demonstrating all the control features.
The cost overhead to employ sales staff and maintain a showroom has been driving these stores out of business. If this trend continues we the price shopping consumers will have to buy our stuff sight unseen from a Chinese warehouse. That has already been happening with overstocks on Ebay.
The cost overhead to employ sales staff and maintain a showroom has been driving these stores out of business. If this trend continues we the price shopping consumers will have to buy our stuff sight unseen from a Chinese warehouse. That has already been happening with overstocks on Ebay.
0 likes
Who is online
Users browsing this forum: No registered users and 16 guests