Circuit City files for bankruptcy

[Gerry]

They were already in trouble and the last thing they needed was an economic downturn.

Circuit City files for bankruptcy

Also,

Deutsche Post to cut 9,500 jobs in the U.S.
Will close all DHL Express centers, end U.S.-only domestic shipping

And Just when you thought the execs at AIG has splurged and squandered enough of your money...

U.S. provides $40 billion in new aid to AIG
Fed, Treasury announce move; comes in return for part ownership

[Acro]

Yeah, Circuit City has been having some crazy sales both on eBay and at its various stores recently. Shame, as competition is a healthy element of commerce. I wonder if Best Buy will be snapping up some assets.

[draggar]

Shows where the priorities are. :S

Not overly suprised over Circuit City, they have been doing horribly here for a while now.

DHL -> Are they leaving the US then?

Yeah, Circuit City has been having some crazy sales both on eBay and at its various stores recently. Shame, as competition is a healthy element of commerce. I wonder if Best Buy will be snapping up some assets.

If you're talking about storefronts, here wherever there is a CC a BB isn't too far away.

It's interesting how the face of our economy is changing so much, banks gone, others growing / appearing (TD Bank north is now a big one?), etc..

[Acro]

DHL -> Are they leaving the US then?

No, just their domestic shipping by air in the US. They are still big in international shipping.

[draggar]

I wonder who my company will use now, UPS is probabaly going to get the biggest piece of that pie.

CompUSA (whoever owns them now - Tiger Direct?) may pick up the CC locations.

[Gerry]

CompUSA (whoever owns them now - Tiger Direct?) may pick up the CC locations.

I hope not. CompUSA was the worst and most pathetic retail service I have ever received.

Went to store in Greensboro. All sales staff sitting on counters. Asked about three different products. Told all out. On way out the door, found all three as featured in sales flyer on a shelf directly near check out.

And that is where they remained.

Yup, on the way out the door and never returned...no wonder they went under as well

No, just their domestic shipping by air in the US. They are still big in international shipping.

I certainly hope that remains the case. Nearly everything I have ordered from all points in Europe are shipped via DHL and I really like their service.

I was buying a tremendous amount of early artworks and oil paintings from private collectors or auctions. Only once was a frame damage but it was a very large picture. The item was poorly package and the frame twisted from the handing and shipping. Most were coming out of Scandanavia and Belgium area.

Here is the US, the also had the most reasonable rates on shipping items like Kayaks. Perhaps 1/3 or even less than what UPS or other carriers wanted to charge.

[tonyfloyd]

Circuit City just got "Short" Circuited!.....ouch!...:(

[randomo]

I hope not. CompUSA was the worst and most pathetic retail service I have ever received.

Agreed. Even compared to other "big box" stores, my local CompUSA had horrible customer service. (Employees were seldom available to help, and when they were, they usually didn't know anything anyway.)

[500,000]

Love Wins

[Gerry]

Comp USA closed last year http://www.pcworld.com/article/14041...g_up_shop.html

Surprised to here you still shop there.

Retail stores closed last year.

My one and only was numerous years ago.

[draggar]

I hope not. CompUSA was the worst and most pathetic retail service I have ever received.

Agreed. Even compared to other "big box" stores, my local CompUSA had horrible customer service. (Employees were seldom available to help, and when they were, they usually didn't know anything anyway.)

I agree. I went to a "new" CompUSA recently and it was far worse than before.

Comp USA closed last year http://www.pcworld.com/article/14041...g_up_shop.html

Surprised to here you still shop there.

They did close last year but the company got bought or into a partnership with an online retailer (NewEgg or TigerDirect?) and is trying to open new stores now. We have one on Federal Highway in Ft Lauderdale - it's far worse than it used to be.

[cursal]

Circuit City fallout to other companies in wake of Default on Loans: Expect ripples...

The company's biggest creditors are its vendors: Hewlett-Packard has a $118.8 million claim followed by Samsung ($115.9 million), Sony ($60 million), Zenith ($41.2 million), Toshiba ($17.9 million) and others. Smaller creditors include GPS navigation system maker Garmin, Nikon, Lenovo, Eastman Kodak and Mitsubishi.

[Gerry]

Circuit City fallout to other companies in wake of Default on Loans: Expect ripples...

Man, how many hits after hits after hits can companies keep on taking.

Feeling Brave?

Buy circuit city stock for $0.11 a share.

If they come out of Chapter 11 strong or get bought, you may end up with some bragging rights.

Assets are assets and prime real estate is an asset.

[draggar]

Man, how many hits after hits after hits can companies keep on taking.

The economical landscape will be completely different in a year, I'm trying to see who the next big electronics store will be, it can't just be Best Buy or will the entire retail sector be swallowed up by Target and WalMart?

[Gerry]

and WalMart?

WalMart made it clearly known a few years ago that they want to be the #1 retailer for electronics and entertainment and the #1 pharmacy.

With $4.00 perscriptions, I think they are achieving this.

In regards to electronics, they have very little profit margin but are forcing all other retailers to lower their prices. WallyWorld can easily offset that on other retail merchandise margins.

The last time I was in a WalMart (I really try to avoid this place) their electronics department had really gone upscale and was carrying superb namebrand flatpanels, HDTV, and computers from HP, Compaq, Acer, and eMachines specifically built for WalMart.

Their influence is astounding.

In addition they had a McDonalds inside that you could order your meal and pay for it in the WalMart check out and go over and pick it up and an RBC Ventura bank rather than the no-name that used to be there.

When WalMart starts carrying "white goods" (appliances) that will be devastating to many other businesses

[draggar]

Walmart is also hurting the economy with their low prices. Many employees are paid minimum wage and very low compared to people in similar positions in different stores plus they have very few FT employees so they do not have to pay for FT benefits, which helps them save money but hurts the employees (yes, I've known many people who work for Wally World).

It's a serious double edged sword but their computer presence is minimal, but that could change especially with the "new" style of Walmart my parents saw in Epping, NH (it was scary, BTW).

I guess we're getting close to the movie Idiocracy (in reference to their Costco).

[Raider]

Only time I got to Walmart is the day after Thanksgiving for the 50% sale... Anyone planning to camp out before the doors open?

As for Circuit City, I'm surprised they stayed in business for as long as they did. Many shoppers go to these stores to look at the product then order it online... Online shopping must really be hurting them, especially now during a week economy.

[Donald Aquilano]

I Guess I'm the only one who loves Walmart here. I can put up with the lousy service for the great prices they offer. Lets take perishable Items Walmart buys goods "on deal" like everyone else but the big difference is they only want to make a 5% percent margin where as other retailers want 30-40%. I don't think Walmart should be punished just because they have successful business model.

Someone made a comment that many Walmart employees make minimum wage. There is a good reason for it. Most Walmart employees who start out have little to no education so you can't expect them to earn much more especially in the retail field.

Walmart is also hurting the economy with their low prices.

No Ed you're completely wrong here. Low prices save money for many households including mine. If Walmart didn't do it someone else would.

[Raider]

Don, For me it's worth shopping at a store like Target where the shopping experience is so much better... You pay a little more for items but I feel it's well worth it.

Long lines, stupid people at the checkouts and NO help to be found are reasons enough to shop elsewhere.

[Acro]

By supporting Wal-Mart you support communist China.

I agree with Raider on the Target part