Circuit City Closing 20% Of U.S. Stores To Save Cash

Here come the closeout sales: Circuit City (CC) says it's shuttering 155 of its 721 U.S. stores, or about 20%, to save cash. The declining electronics retailer will also consider "all available options and alternatives to restructure its business."

(They won't get the $6 to $8 cash per share that Blockbuster foolishly waved earlier this year, that's for sure -- Circuit City shares are trading at 30 cents per share in pre-market trading.)

Read the whole story here.

Comments

[arvay]

If there ever was a company that deserved this fate, it's Circuit City.

This is the company that fired all of its most experienced and best-paid workers, and offered them their jobs back if they'd accept entry-level salaries. Seldom have we seen such rank stupidity masquerading as tough business strategy. It's the kind of stupidity that cries out for Darwinian extinction.

No one should ever buy anything from Circuit City gain until they reverse this policy.

[DFL]

WHY WOULD I WANT TO VOTE FOR MORE OF THE SAME? -UNDER A DEMOCRAT IN THE WHITE HOUSE LAST DECADE, WE DID NOT HAVE STORIES LIKE THIS ONE.

[robinhood1]

We still have Amazon.com. I won't miss Circuit City.

[gcallaghan]

Damn. They owe me a coupon for a new laptop.

[themodernleader]

Twenty+ percent of our GDP is in financials. Eighty percent of our economy is service includes the 20+ percent financial industry. The financials fall with hundreds of thousands of jobs, never to return. Then the other service jobs fueling our consumption with borrowed monies is losing thousands and millions of jobs. Our manufacturing is close behind. Where are the future jobs to come from? That is the question.

[iambusto]

reality shows, mtv, bet. :)

[MajorKong]

Well, we tried selling our houses to each other and look how THAT worked out.

[Chaucea]

Geez, and they JUST opened a store up here a few weeks back in Colorado (its not one that's being shut down).

I was going to use the 10% off card they sent out in the mail for the grand opening, but decided against it after checking their prices... wow, they are really high compared to other retail and online stores.

[bmnehls]

No of you seem upset at all, maybe you didn't like the store but I preferred Circuit City over Best Buy and I have never had a problem with them, never had to wait around to get help and there were always people at the registers to check people out. And what do you know, the Circuit City I go to is closing and I'm not too happy about it because I have my computer's warranty through them and now if something happens I have to drive an hour out of my way to get it fixed.

[bmnehls]

That was supposed to be "none" at the beginning not "no" sorry about that.

[readyforchange]

Not upset about this... They are overpriced. Check-out is a hassle, so are returns. I quit shopping there years ago.

[iambusto]

Here is a brief look at Circuit City:

Market Cap: $62 Million
Employees: 43000 !!!!!!!!

WTF? Who runs a 62 million$ company with 43000 employees. And people expect a company like this to survive?

Read that again, a less than a billion $ company employing over 43000 people. Is anyone doing anything at that company or just listed on payrolls.

They say now they are closing 15% of stores. How about 50% instead?
they are laying off 17% of employees. how about 50%.

maybe then they can survive.

Btw, they already have gotten a notice from NYSE warning of delisting (because its share price less than 1$ for 30 days). for next 60 days if they are not above 1$ on an average, they will be DELISTED. yes. become a pink sheet stock..:)

[KillTheMessenger]

Market cap is completely irrelevant to the performance of a company. The problem with Circuit City is that they offer less than their competition for a higher price. I can buy all the things they have in their stores cheaper online and most of what they got cheaper a couple miles away at some of the other retailers.

[iambusto]

"Market cap is completely irrelevant to the performance of a company. " --->Agree. I should have stated How about drop in market cap?

[KillTheMessenger]

If your only idea on how to conduct business is to be the cheapest kid on the block, you better make sure you actually are.

[RedneckDem]

CC's death knell began when they fired all of their best and highest paid (commissioned) salespeople as a cost saving move. It was the most boneheaded move I've ever seen. Good riddance to this Made in China operation...

[iambusto]

its chapter 11 for them. i cant for the life of me see them emerging without slashing at least 50% or more of their stores....there is too much capacity in the electronics retailing industry.

[Changeling]

CC sucks.

Here's an idea to make some of the other store profitable: Have people around registers to actually check people out. Can't tell you how long I've had to wait in a virtually empty store just to get out of it.

Which is one reason ive stopped going.