AfterDawn: Tech news

Circuit City sales have plummeted since bankruptcy filing

Written by Andre Yoskowitz (Google+) @ 24 Dec 2008 15:59 User comments (10)

Circuit City sales have plummeted since bankruptcy filing According to an attorney for the company, Circuit City sales have fallen 50 percent since the electronics chain filed for Chapter 11 bankruptcy over a month ago.
The company had projected a decline of 28 percent and had forecasted that projection into their budget. Yesterday, the court approved a $1.1 billion USD revolving credit line for the retailer in hopes that it can get out of Chapter 11.

Circuit City spokesman Bill Cimino added that the weak sales “should not be considered a negative,” considering the economic recession. He also noted that the company was improving its gross margin rate which was helping offset the sales decline.

Not everyone sees the numbers as a positive however. Retail consultant and investment banker Howard Davidowitz said it would be nearly impossible for the company to get out of bankruptcy protection given the harsh terms of the loan and the "collapse" of the retailer's customer base.

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10 user comments

124.12.2008 17:02
tripplite
Inactive

no joke best buy today was bustling out of control.... circuit city down the block....the parking lot was empty....if you ask me their pretty d%m sterile, i dont think they will be opening new stores any time soon lol!

224.12.2008 17:14

Coming from "the Ol Compusa"I can tell you that I'm sorry to read this because of ONLY the fact that this country needs every possible business to stay afloat.On a personal note,I can't stand Circuit City because of too many reasons to name but people needs jobs so I have to put my feelings aside.

324.12.2008 21:38

i dont have one where i live and closest one is 1 and half hours away so no biggie if it went under to me not likely to buy anything over $100 there anyway.

424.12.2008 23:59
david89
Inactive

there prices are to high for one they should lower the prices to beat bestbuy then i bet business will comeback they got be more compative same with all failing businesses sale below retail price then sales should go up but if then will it be enough with all the people out of work who knows but it's a start.

This message has been edited since its posting. Latest edit was made on 25 Dec 2008 @ 0:00

525.12.2008 2:06

When I bought my Canon DSLR from them about 6 months ago, they had the better price hands down. Not only were they cheaper on the camera but they threw in tons of free stuff too. It was a better deal than I could find anywhere online and they beat out Best Buy. This really sucks not only for the jobs that might be lost but for the lack of competition will surely drive Best Buy's prices up too. Plus they've been around for as long as I can remember.

625.12.2008 3:22

Idiots! I have 2 Circuit City's within 15 min of me 1 is only a few years old! You drive buy & see a Huge SALE, STORE CLOSING! sign & think what? I know i think well i may spend $20-30 there on a cheap xbox controller & when i mean cheap i mean $25 as apposed to the norm $50! But no way am i going to pay $1000 for a computer that if dies in 2 weeks i have no recourse! To the general public it looks like all the stores near me are closing & going out of business FOREVER! Just like CompUSA did a few years back! I know my local compusa closed but i never payed attention to what happened to the company as a whole!

725.12.2008 11:02

In my opinion the stand alone store has a much rougher time getting customers compared to one's attached to malls. Best Buy, their only real competition is mostly part of malls and thus flourishes compared to Circuit City. People like convenience and stopping at multiple locations just isn't justified for most anymore. I like buying online more than either store, but I do not like the idea that many more people are losing jobs. This is just another domino effect in our crumbling economy.

826.12.2008 11:17
tavek
Inactive

Hands dosn CC has better prices then BB. If you want to argue go online & compare. I think BB has an edge mearly cause the mall issue, where CC is stand alone. Also I beleive most or just some people are angry how CC laid off people in the past and how they did them wrong.
The days of company loyalty are gone . Look at ford, GM, those old dasys when people where proud to work for certain companies are a fading if not GONE fad. With the internet, amazon its now a global competition for stand alones. If CC is to servive they would need to pool thier resources and join with another corp, maybe starbucks & barnes n noble?
Comp USA failed cause their prices were rediculous.

926.12.2008 22:11

Die! Die! Die!

The wackos screwed me when i bought my first PC with the warranty from CC. It does not cover the software or help, and when my HP PC was just over a year old, I called HP and they told me that my 1 year service warranty expired and i told them I bought a 4 year warranty through CC. They told me to call CC. I did. CC told me they do not offer support for computers. Only if a part broke.

Die CC. Die!!

1028.12.2008 9:37

Well they might as well start digging their own grave.


RIP

CC

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