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Circuit City Files For Bankruptcy

WillDraven is just one of many who writes to tell us that Circuit City, the United States' 2nd largest consumer electronics retailer, has filed for bankruptcy under chapter 11. This news comes as no surprise as the company has been in financial trouble, recently announcing that it will be closing over one fifth of its stores and laying off 17% of its US employees in the process. "Larger rival Best Buy, which is based in Minneapolis, has said it might take over stores that distressed rivals close. Yet a flood of discounted merchandise from liquidating Circuit City stores could hurt Best Buy during this holiday shopping season, said Jefferies & Co analyst Dan Binder."

89 of 574 comments (clear)

  1. Yeah, You Could Say That by eldavojohn · · Score: 5, Informative

    This news comes as no surprise as the company has been in financial trouble ...

    "Financial trouble" doesn't begin to describe it, their stock's been below 25 cents for a few days now. I was debating on blowing 20 bucks and demanding the paper stock be sent to me so I could have fancy roll of toilet paper to put near the can when guests are over. It wouldn't be a horrible investment as I'm sure it'd have other uses too ... lighting cigars with it, using it as wrapping paper for Christmas, etc. A man's gotta increase his perceived wealth among his peers, you know.

    --
    My work here is dung.
    1. Re:Yeah, You Could Say That by bcrowell · · Score: 2, Interesting

      Yeah, in general I'm wondering what's the right thing to do with stocks I own that are very low in share price. Normally I don't try to "pick stocks" at all, and I don't buy or sell based on movement in prices -- the only reason I own individual stocks is that I wanted to have a socially screened index fund that met my own idiosyncratic social screening criteria. But my understanding (corrections would be appreciated!) is that when a stock goes down below a certain share price or a certain market capitalization, it can get delisted. After delisting it can only trade as a pink sheet, and there may be problems with liquidity. Here are the NYSE's listing criteria, which include (with some oversimplification on my part) market capitalization of 100 M$ and a share price of $4. They don't lower the boom immediately if a company falls below their standards, but when you're getting down to share prices of $1 and $2 it's pretty clear that it could be delisted. So what's the smart thing to do? If I sell, it costs me $7 for the trade, and I could just be locking in losses. If I hang onto it, I could lose my ability to liquidate it, and even if it retains liquidity I'm also not clear on what happens as a practical matter if I own a stock via an online brokerage, and then it goes to the pink sheets market -- hassles for me? expenses?

    2. Re:Yeah, You Could Say That by WillyDavidK · · Score: 2, Informative

      It's now at 2 cents! It seems that the stock has been consistently declining for years now. It's been falling since May '06 according to google.

      --
      For lack of a better signature...
  2. I can't bring myself to have much pity for them... by Shakrai · · Score: 5, Insightful

    ... given the fact that they treat their customers like criminals. Besides which, my local electronics place usually beats them on price -- and there's always online shopping.

    --
    I want peace on earth and goodwill toward man.
    We are the United States Government! We don't do that sort of thing.
  3. shoplifting by bugs2squash · · Score: 4, Funny

    The entire loss was due to shoplifting, they should have been more suspicious of their customers. Hopefully there will be a crackdown now.

    --
    Nullius in verba
    1. Re:shoplifting by IronChef · · Score: 3, Interesting

      Best Buy is on it. I went into a BB to return something once, and I didn't have a receipt... They made me wait while they reviewed the security videos to make sure I walked in the store, and didn't just pick the item up off a shelf.

      They were very rude throughout the entire affair, which surely made any real shoplifters nearby head for the hills.

      So, invest with confidence! Best Buy is an invulnerable retail fortress. What could go wrong?

    2. Re:shoplifting by spire3661 · · Score: 2, Informative

      In almost all retail, the majority of theft occurs from employees.

      --
      Good-bye
    3. Re:shoplifting by AbRASiON · · Score: 5, Insightful

      Is this post a joke? I can't tell, I really can't tell, if it is bravo, you got me.

      If this post is not a joke, good lord, wow! You Americans and your expectations from retailers continue to fascinate me, absoloutely and utterly incredible, it's got to come to an end.

      I've been using the internet now for about 12 years and I'll never forget the first time I heard some of the stories you guys would relay.
      Rebates, incredibly cheap prices compared to the rest of the world, massive huge stores with IT gear in them, like KMart sized IT stores, wow!
      You can actually purchase a product and then go back a week later if the price drops with your receipt and they give you the difference, what the hell? Over here that's 'tough luck buddy' (and to be honest, so it should be! you bought it when it was higher, tough!)

      The deals you can find on the internet still blow me away "buy this router for 11$ get a 9$ rebate" "buy product X for 50$ with a 30$ rebate" yet these same items cost 80 or 100$ US over here!

      Now I've just come across your post, and I sit here unable to comprehend it.
      You're telling me you want a store to give you a cash refund on a purchased product without a receipt and you have the audacity to whine about it?
      Really? Where's the bloody proof you purchased it?
      You could have stolen it.
      You could have purchased it cheaper somewhere else, effectively stealing from these people.
      You could work for the manufacturer and get them cheaper.
      It could be broken.

      There's a plethora of reasons why companies demand a receipt, it's common bloody consumer knowledge, I mean seriously what next will you people expect from retail stores? "Sorry, I don't have the cash on me now but I promise I'll pay next week!"

      This way of doing business and being so competitive and catering to the ever pushy consumer (and a large portion of Americans are a very pushy consumer) is what's causing business's to go bust, admitedly circuit city was a dump but really, there needs to be a sharp dose of reality kicked in here.

      Disclaimer: Not all Americans are pushy, not all business's in America cater to some of the ridiculous whims of the consumer, none the less as a foreigner the above is the impression I have gathered over the past 10 years of speaking to some of you guys and gals on the internet, really - you had it good, you had it too bloody good in some ways, consider yourselves damned lucky... price protection for goodness sakes.. sheesh

    4. Re:shoplifting by IronChef · · Score: 2, Informative

      My friend, the reason why I complained about the treatment is that it was the store's policy to give a refund, even without a receipt. (Well, with no receipt, you'd get a store credit, technically.) I wrongly assumed that all readers would know that about the place.

      So I went back to the store to take advantage of the posted policy--which is lenient to attract customers--and was unhappy at being treated poorly.

      If I was trying to get something out of the store that the store was not offering, I would be a dick and you would have a point. But they said, "come on back if you want to return it, even without a receipt, and we will take care of you" and then almost called the police when I did it.

      It was probably a clerk having a bad day and a power trip because Best Buy is not famous for such shenanigans. Other shenanigans, yes. But still... a bad experience like that will color your impressions of a place.

      I hope you understand better now what happened, and that you are not still defending the store's actions.

      You may feel that such policies are silly and too forgiving, but that is another topic. Regardless they remain common in big retail chains here.

  4. La Source by Win0ver · · Score: 5, Interesting

    Circuit City bought all the Radio Shacks here, and changed their name to "La Source: by Circuit City" Do they all get closed too?

    1. Re:La Source by archen · · Score: 5, Funny

      And on that note, Radio Shack survives Circut City. Totally bizarre that nothing seems to kill that chain. I'm starting to think that if there is a nuclear war, I may just run to radio shack since they seem to strangely survive everything without rhyme or reason.

    2. Re:La Source by Skevin · · Score: 5, Informative

      Radio Shack has unrecognizably revamped themselves throughout their lifetime. The original name came from back when they were selling equipment catering to ham radio enthusiasts. Then, at some point, they were only selling record players and stereos in the 40's, and suddenly the staff dumbed down - my grandfather had difficulty requesting things like 3200-ohm resistors anymore, or having them made behind the counter by staff.

      In the 1960's they declared bankruptcy (just like CC this morning), but a certain Charles Tandy bought them out. Tandy was a leather mogul, and the chain was temporarily renamed... wait for it... Tandy Radio Shack & Leather! Radio Shack was the place for all your leather needs! BTW, I have a genuine Radio Shack bullwhip in my attic. Too bad I never got around to asking for a ball gag and blindfold.

      Then they went back to concentrating on low level electronic components. Then they switched the emphasis on to trying to sell home computers. Then they switched to almost strictly consumer electronics.

      So I don't think of Radio Shack as a cockroach, whose form hasn't changed for millions of years... It's more like the Phantom, when each one dies, it passes the name and costume to someone in the next generation, who most likely has different tactics and fighting styles.

      --
      "Twice half-assed makes an ass whole." --Solomon K. Chang
    3. Re:La Source by Sponge+Bath · · Score: 4, Funny

      ...passes the name and costume to someone in the next generation

      I'm thinking the next move will be to
      "Radio Shack - Head Shop and Erotic Toys"

      I'm sure they will continue selling batteries for the various lifestyle accessories.

    4. Re:La Source by Hal_Porter · · Score: 2, Funny

      Radio Shack will always survive because it sells 555 timer chips. Those protect it from recessions, shoplifters and rentacop security guards scaring the customers away by preemptively waterboarding them in the back room to deter shoplifting.

      --
      echo -e 'global _start\n _start:\n mov eax, 2\n int 80h\n jmp _start' > a.asm; nasm a.asm -f elf; ld a.o -o a;
  5. Didn't they push the evil DIVX? by bennomatic · · Score: 4, Interesting

    Didn't things start to fall apart when they tried to push that crazy DIVX rent-and-throw-away DVD format?

    --
    The CB App. What's your 20?
    1. Re:Didn't they push the evil DIVX? by squiggleslash · · Score: 2, Funny

      Yes, it only took TEN YEARS for DIVX to completely destroy them!

      I think Circuit City is suffering from the fact it's trying to push HDTVs and Blu-ray players in an economy that sucks. That's it. That's all it is. High priced luxury goods, nobody to buy them.

      --
      You are not alone. This is not normal. None of this is normal.
    2. Re:Didn't they push the evil DIVX? by yenne · · Score: 2, Interesting

      If you take anything away from this thread, it should be that consumer boycotts seem to work.

      DIVX was the reason a bunch of my friends and I stopped shopping at Circuit City. When DIVX died, I had already altered my shopping habits and never had any reason to go back.

      Evidently I've missed a lot of excitement and a slew of additional reasons folks have stopped shopping there.

      We voted with the almighty buck.

  6. Re:Weak by eldavojohn · · Score: 5, Funny

    I might be crazy, but it was always so dark in their stores. Maybe that was to enhance the rest of the lighting.

    It's called a target market. They were catering to the goth market that was alienated by positive, well lit, bright blue, khaki wearing Best Buy employees.

    You didn't notice the nipple rings and dark eye shadow being "standard flare" for Circuit City's uniforms? What about their efforts to exclusively offer The Crow on Blu-Ray or the Circuit City brand razor blade impulse aisles?

    --
    My work here is dung.
  7. Re:I can't bring myself to have much pity for them by tripdizzle · · Score: 2, Informative

    Wow good link. I find this surprising in that I was always told that once you are in the parking lot, the security for the store wont do anything and call the police on you. The security weren't even allowed to leave the building in case of a grab 'n dash. I know a couple people who shoplifted frequently a few years ago and walmarts and targets, they were never caught, but they were also under the impression that security wont leave the building to snatch up a shoplifter.

    --
    "A claim for equality of material position can be met only by a government with totalitarian powers." Hayek
  8. could hurt Best Buy... by More_Cowbell · · Score: 3, Interesting

    But I doubt it.
    Their prices and selection always sucked in my experience, and it does not look like the liquidation will change that.

    --
    Experience teaches only the teachable. -AH
  9. Oh well. by fuzzyfuzzyfungus · · Score: 4, Interesting

    I'm not exactly optimistic about brick and mortar electronics shopping in the even grimmer world of hegemonic Best Buy(thank the FSM for a local Microcenter); but Circuit City really, really deserved it. Unimpressive prices, incompetent service, paranoid treatment of customers, that whole "Hey, let's fire our best salespeople and attempt to hire them back at insultingly low wages" incident... Reduced local competition isn't a good thing; but Circuit City was too sick to survive, or even deserve to survive.

    1. Re:Oh well. by gemtech · · Score: 3, Insightful

      I was wondering if anybody was going to mention Micro Center. At this point in my life I've now bought several computers from Micro Center, and lots of repair stuff (CPU fans, power supplies, etc.), always good folks and a minimum of hassles with any problems. 21 locations all of the country, but clearly not everywhere. Pretty decent web store. I bought one of the first IBM PCs for an engineering project at the original store in Westerville, OH, back in 1982.

      --
      Insanity: doing the same thing over and over again and expecting different results. Albert Einstein
  10. Re:I can't bring myself to have much pity for them by Mix+Master+Nixon · · Score: 5, Insightful

    Good riddance to a disgraceful company. Let's not forget how they fired all their highest-paid, most experienced employees and allowed them to re-apply for minimum wage positions. After they pulled that stunt I never spent another penny there, going way out of my way to go to Best Buy instead when I needed to purchase something from that sort of store and didn't have the time luxury of getting it from the internet. Don't misunderstand: Best Buy sucks too, but at least they're not Circuit City.

    --
    Oppressing an entire population is never cheap.
    --Jeckler (/. Beta IS GARBAGE!)
  11. Re:I can't bring myself to have much pity for them by PaprikaPal · · Score: 3, Insightful

    No pity here either. Circuit City was so poor about stocking items listed in the weekly sale ads I got fed up and quit reading their ads all together and actually going to the store became a total waste of time.

  12. Re:Five of the last Six Quarters Were Losers. by Anonymous Coward · · Score: 2, Informative

    Can you say Vista Failure? I can. So goes the M$ retail chain.

    Seriously, what is your deal, dude? Yeah, I get it, you've somehow managed to join the GNAA & Goatse trolls in the ranks of annoyances on this site. You post 140 bytes or less sized comments and hijack threads. If you think this is appreciated by the community, why don't you take a look at your karma.

    Seriously, you belong on Digg or maybe even Twitter! (Imagine that.)

  13. Discounted Merchandise by CopaceticOpus · · Score: 4, Insightful

    A flood of discounted merchandise from liquidating Circuit City stores could hurt Best Buy during this holiday shopping season

    I hardly think a company that sells a cable for $129.99 when a functionally equivalent cable is available for $5.43 is concerned about the availability of discounted merchandise.

    1. Re:Discounted Merchandise by Thaelon · · Score: 3, Funny

      They're too embarrassed.

      --

      Question everything

    2. Re:Discounted Merchandise by Thaelon · · Score: 4, Funny

      They're not even equivalent. The $5.43 cable is two feet longer. So, per foot, the monster cable is actually 3,590% more expensive

      --

      Question everything

  14. Discounted merchandise? Not likely by sunking2 · · Score: 5, Interesting

    As anyone who tried to find a good deal when compusa went under, good deals will be few and far between. Oh, you'll see lots of 30-50% off stickers, but they'll be against the MSRP or some other jacked up price. They will never come out of this and the inventory is worth more to them as an asset for some liquidation company than if they sell at too much of a loss. And I question how much inventory they really have anyway. Last time I was in there the shelves were pretty bare and I imagine the stock room is by now too. This has been well over a year in coming.

  15. Re:I can't bring myself to have much pity for them by gfxguy · · Score: 2, Insightful

    Interesting.

    I've longed since stopped going to either Best Buy or Circuit City, but I have to wonder why someone can't accept the annoyance in exchange for lower prices *. Fry's does the same thing, after all, but people here generally love Fry's so you don't see anyone complaining.

    What you have here is not a violation of any rights, they weren't going to search purses and handbags (although some stores do - but they clearly post that they reserve the right). It's implied consent when you shop at a store like that, and if you don't like it, don't go back.

    I admit the part about the cop arresting him for doing nothing wrong is a bit perplexing, but I'm sure the outcome will be a positive one. To think, that guy could have avoided all the hassle, all the wasted time and money, just buy opening the plastic Circuit City bag and showing the receipt.

    People keep demanding lower prices, they're going to have to put up with crap like this to get them.

    * Yes, I read where you said the local place beats them on prices. Then why do people shop there? There must be some compelling reasons.

    --
    Stupid sexy Flanders.
  16. Re:Weak by eln · · Score: 4, Funny

    Unfortunately, they didn't take into account the fact that after spending 99% of their disposable income on black eyeliner, goths have very little money left for consumer electronics.

  17. I know its just not me... by vertinox · · Score: 2, Funny

    But didn't anyone feel sad because of their memories of formatting those Windows 3.1 machines they had on display in Circuit City back in the early 90's?

    That and putting something "cute" on the marquee screen saver.

    Maybe I indirectly lead to their demise some odd 20 years later after making the one person who could have saved the company quit in frustration because of those damn brats.

    --
    "I am the king of the Romans, and am superior to rules of grammar!"
    -Sigismund, Holy Roman Emperor (1368-1437)
  18. Re:I can't bring myself to have much pity for them by empesey · · Score: 4, Funny

    The receipt check they do is bogus anyway. They don't actually check anything on the receipt. Basically, they look to see you have a receipt. They never look in the bag to see what you have, and they certainly never match what's in the bag to what's on the receipt. After they do a receipt check, quiz them on what you bought. They will never be able to tell you. Never!

  19. Re:Bailout by truthsearch · · Score: 4, Insightful

    AIG is FAR bigger than Circuit City and tightly intertwined into the economy of the country. Nothing will change with CC going out of business except their employees losing jobs. AIG going out of business would mean huge collateral damage to the entire financial industry, which would then affect every other industry.

    I'm not saying I'm for the bailout. But AIG has a massive impact where CC does not.

  20. Re:I can't bring myself to have much pity for them by Mr.+Slippery · · Score: 3, Informative

    ... given the fact that they treat their customers like criminals

    Best Buy has the same policy. After a confrontation with one of their rent-a-cops, I no longer shop there.

    --
    Tom Swiss | the infamous tms | my blog
    You cannot wash away blood with blood
  21. IT's just bad retailing by tjstork · · Score: 2, Insightful

    Have a look at Best Buy and how Best Buy continues to have a better, more attractive retail space. On the other hand, Circuit City got more and more confused and worse and worse. I used to like to go to Circuit City and Comp USA but both those stores screwed up their floor plans so much that I lost interest in them. On the other hand, I was in Best Buy and it just amazed me, how nice it was.

    --
    This is my sig.
  22. Make sure they have a transfer agent by Shandalar · · Score: 5, Interesting

    Seriously - I attempted this once with a different company and was not able to get the paper shares because they lacked a 'transfer agent' at that point. Make sure they can deliver.

  23. Re:Weak by MBGMorden · · Score: 2, Interesting

    Probably just a matter of area of country, but I always took Best Buy as a more successful Circuit City knockoff. We had a Circuit City around here for close to 15 years before I saw a Best Buy. I still remember their old ads on TV with the giant red electrical plug coming down out of the sky to "plug in" and form the front of their building.

    And honestly, I'm sad to see them go. They always had at least as good of inventory and prices as Best Buy, but never the "rebate hell" issues Best Buy initially had (I know they've fixed this now but it was a big turn off early on that still influences me), and less pushy sales staff.

    Not sure about the lighting conditions you mention though. The two of them here were always very brightly lighted.

    I'll admit though that I rarely bought anything there anymore. Prices and selection are better online, so Circuit City was relegated to impulse purchases and things that I really wanted/needed right now with no wait (ie, my mouse died about a year ago and all my old spares were PS/2 only - my new KVM is limited to USB. It was worth it to me to buy a replacement locally rather than wait 3-5 days to get a new one in).

    --
    "People who think they know everything are very annoying to those of us who do."-Mark Twain
  24. Re:I can't bring myself to have much pity for them by Culture20 · · Score: 4, Insightful

    Laws are different in different states. Just before CompUSA closed, I had a manager and security guard refuse to let me leave the building until I showed them my receipt. After some arguing, I gave in, then laughed in derision at the manager, saying this draconian policy is why CompUSA was losing business. Seems like Circuit City followed suit.

  25. Re:I can't bring myself to have much pity for them by Mr.+Slippery · · Score: 5, Insightful

    What you have here is not a violation of any rights, they weren't going to search purses and handbags (although some stores do - but they clearly post that they reserve the right). It's implied consent when you shop at a store like that, and if you don't like it, don't go back.

    Searching my bag - whether it is a bag I came in with, on my brand new (once my purchase is completed at the register) Joe's Discount Electronics' bag - is indeed a violation of my rights. I don't surrender my rights because you put up a sign.

    If specific and articulable facts lead you to a reasonable suspicion that I have been involved in a crime, they can hold me and call the cops. Store personnel have no right to search my person or my effects, and they do not gain such by posting a sign. All they can do if I don't comply with their store policy is ask me to leave and not come back - which, when treated like a criminal, is exactly what I want to do anyway.

    --
    Tom Swiss | the infamous tms | my blog
    You cannot wash away blood with blood
  26. Re:Weak by Lumpy · · Score: 4, Funny

    Problem is they kept pushing a card game on everyone...

    http://en.wikipedia.org/wiki/Gother_Than_Thou

    for more info about it.

    Plus the emo kids were all committing suicide in the aisles when they found they could not buy copies of panic at the disco.

    --
    Do not look at laser with remaining good eye.
  27. Re:I can't bring myself to have much pity for them by Shakrai · · Score: 5, Insightful

    What you have here is not a violation of any rights, they weren't going to search purses and handbags (although some stores do - but they clearly post that they reserve the right)

    I don't think putting up a sign gives them the right to go through my things. At best they could ask me to leave if I refused to let them go through my bags. Of course this is a moot point unless they are going through the bags before you enter the store, because by the time they asked you to leave you would already be on your way out the door anyway.

    It's implied consent when you shop at a store like that, and if you don't like it, don't go back.

    I'm sorry but it's not. If I put up a sign on my front door that says "all female guests waive the right to refuse to have sex with me" does that mean I can rape with impunity? All they can do is ask you to leave -- but unless they are enforcing this policy when you enter the store (as opposed to when you exit) it's kind of like closing the barn doors after the horses have already escaped.

    To think, that guy could have avoided all the hassle, all the wasted time and money, just buy opening the plastic Circuit City bag and showing the receipt.

    He probably could have. Some people are willing to give up their rights to avoid a little hassle. I'm not one of them.

    Yes, I read where you said the local place beats them on prices. Then why do people shop there? There must be some compelling reasons.

    Because Circuit City is on the flashy commercial strip and the local place is tucked away in an old part of town that most people aren't familiar with?

    --
    I want peace on earth and goodwill toward man.
    We are the United States Government! We don't do that sort of thing.
  28. USE UP YOUR GIFT CARDS! by BUL2294 · · Score: 5, Informative

    One thing that people don't realize is that when retailers declare bankruptcy, their gift cards are worthless. You're considered an unsecured creditor, which puts you in the back of the line among all other creditors. If there's anything left, you might get pennies on the dollar for what the card is worth--a few years down the road. Some companies plead their cases with the courts to allow gift card holders to use them--after all, if those people lose their card values, they won't be shopping at the now-bankrupt company, especially when the company needs those customers most...

    At least Consumers Union is trying to petition the FTC to force companies to honor outstanding cards... But I can only see this happening if a retailer chooses to reorganize--forget it if they're liquidating.

    So, the best advice is to use up your gift cards NOW , before the retailer goes under. Given that Linens & Things, Lilian Vernon, Sharper Image, and now Circuit City all went bankrupt in 2008, this problem will get worse FAST.

    I'm curious to know if this is a problem limited to U.S. retailers... Is this an issue in Europe, Japan, etc.?

    --
    Windows 3.1x calc: 3.11 - 3.10 = 0.00
    1. Re:USE UP YOUR GIFT CARDS! by DriedClexler · · Score: 2, Interesting

      This practice (of treatment of gift card holders in bankruptcy) has always repulsed me, and here's why: When a store sells any other product, *it's gone*. It's not theirs anymore. They don't get to repo it to pay other creditors, no matter how bad their business is. But with gift cards, they do. You'd think that "$50 worth of Circuit City merchandise" is no longer theirs to give away, but you'd be wrong.

      Ho, hum, right? But no, it gets worse when you think about it this way:

      By considering you as an unsecured creditor, that effectively means that when CC sells a gift card, they are selling a financial security, like a stock or a bond. Now, think about the normal procedures you have to go through to buy securities, all the hoops the SEC makes you, and the issuers of securities, jump through, all to protect you from yourself. Now, whether or not you agree with that kind of paternalism, you have to realize that they are effectively *exempting* businesses from ordinary laws about securities -- by not making them jump through these hoops to issue additional debt/equity -- and they're doing it in *just* the very case that hurts the little guy with least capacity to sue.

      Now, go tell Circuit City that your financial situation isn't so good, so you want back some of the money you gave to them years ago, and let me know what happens.

      --
      Information theory is life. The rest is just the KL divergence.
    2. Re:USE UP YOUR GIFT CARDS! by powerlord · · Score: 4, Funny

      Best new idea for Holiday Stocking Stuffers:

      Giftcards from companies about to file for bankruptcy.

      Hey, its not YOUR problem if the $100 giftcard (that you only paid $5 for), is worthless by the time the recipient can actually use it.

      It's the thought that counts ... right? :)

      --
      This space for rent. All reasonable inquiries will be entertained at proprietors discretion.
    3. Re:USE UP YOUR GIFT CARDS! by russotto · · Score: 2, Informative

      One thing that people don't realize is that when retailers declare bankruptcy, their gift cards are worthless. You're considered an unsecured creditor, which puts you in the back of the line among all other creditors.

      It gets worse. Suppose you've ordered something, and paid for it, but the store hasn't delivered it yet. This undelivered merchandise is part of the bankruptcy estate and can end up being re-sold to pay off other creditors.

  29. Re:More Evidence that the American Consumer by tgd · · Score: 4, Funny

    If you paid $600 for your computer, it might've had an enter key on the keyboard ...

  30. Re:I can't bring myself to have much pity for them by Shakrai · · Score: 5, Informative

    I'm not familiar on Ohio law, but in many places it's illegal to not have some form of ID when over 18.

    Too bad, because if you had bothered to become familiar with Ohio law before opening your mouth you would have discovered that Ohio law specifically says that you aren't required to hand over ID:

    "Nothing in this section authorizes a law enforcement officer to arrest a person for not providing any information beyond that person's name, address, or date of birth or for refusing to describe the offense observed."

    And BTW, just where in the United States is it illegal not to have ID on you?

    --
    I want peace on earth and goodwill toward man.
    We are the United States Government! We don't do that sort of thing.
  31. Commissioned Sales People by zubikov · · Score: 5, Interesting

    I worked at CC from 2000-2002 as a commissioned salesman. CC differentiated themselves by being the only national electronics chain with a loyal, knowledgeable, community-oriented staff. We're not talking 17 y/o high school juniors, but middle-aged sharks who at least knew what they were selling. This worked and stores were in the black, but the 2001-2003 economic conditions caused the clueless management to shift the blame on the sales force and divert to the hourly model. Since then, the store became a cheap knock-off of Best Buy with no value added to the customer. It was only a matter of time before this happened. They were too late to the online game, and were wiped out by the Neweggs and the Amazons. RIP another pointless store that takes pride in making people borrow money they can't afford to pay back. Who's next?

  32. Re:I can't bring myself to have much pity for them by Shakrai · · Score: 2, Funny

    Just before CompUSA closed, I had a manager and security guard refuse to let me leave the building until I showed them my receipt

    That's the point where I would have pulled out my cell phone, called 911 and told the dispatcher that I was being held against my will.

    --
    I want peace on earth and goodwill toward man.
    We are the United States Government! We don't do that sort of thing.
  33. Re:I can't bring myself to have much pity for them by squiggleslash · · Score: 5, Insightful

    Too likely to get into trouble. A simpler solution is to do exactly what the manager is asking for: show them the receipt. But at the Returns desk.

    --
    You are not alone. This is not normal. None of this is normal.
  34. Re:I can't bring myself to have much pity for them by corsec67 · · Score: 5, Informative

    It depends on the state, but in Colorado, an employee can detain someone if the theft detection alarm goes off.
    From the Colorado Revised Statutes, 18-4-407.

    --
    If I have nothing to hide, don't search me
  35. Doesn't surprise me by chrisgeleven · · Score: 2, Interesting

    The CC in Manchester, NH is really hard to get to, right in the middle of probably the busiest street in the city with numerous stop lights in each direction. It sometimes can take a good 15-20 minutes to get from the highway to CC when the traffic is bad. I almost never see the parking lot with more then 15 or so cars in it, most of those are probably employee cars. The employees are always standing around because there is nothing to do either.

    Meanwhile BestBuy is down the street at the local mall, but right next to a highway exit, making it much easier to get in/out. It is always busy and surprisingly there is usually someone available to help you (although I never ask for help, as I know where to go).

    To me, it doesn't surprise me that this is happening. In fact, I was shocked that the store here wasn't part of that 1/5th of stores closing announcement.

  36. No loss for me by g051051 · · Score: 2, Interesting

    I haven't given them any business in many years. Each time I've been tempted to shop there, I keep having terrible experiences that drive me away again.

    The most recent example was 6 years ago. I had recently purchased a house and wanted a home theater system. I decided to try Circuit City again, and after browsing around for a while (and fending off the sales droids that were harassing me) I wound up with $1000 worth of merchandise in my cart. The audio sales droid, apparently wishing to get a commission for doing nothing, asked to check me out at his register in the back of the store. Things were going along OK, until he got to the infamous Circuit City extended warranty push. After he started that, I cut into his monologue and told him, in no uncertain terms, that I wasn't interested in the extended warranty. He began to protest, and I reaffirmed that he should stop talking about that and move on. He said fine, but he had to tell me about the warranties that came with my equipment. I told him to go ahead, and he began describing the stock warranty information for the selected equipment. He then segued back into the extended warranty pitch! So, I simply turned around and left the store. I stopped briefly to tell the manager what happened, and that I had just abandoned $1000 sale because his people didn't know when to shut up. So, I walked across the street to another electronics retailer, and got a similar setup for $200 less! That was just the most recent example, I had quite a few others related to service on a VCR, and other problems with sales people.

    The biggest surprises for me related to this story were that they hadn't gone out of business before, and that they were the #2 electronics retailer!

  37. Re:I can't bring myself to have much pity for them by Shakrai · · Score: 4, Insightful

    You're expecting me to become familiar with Ohio law?

    Only if you intend to make statements about it, i.e: "He did something wrong when he refused to show ID to the police officer". If you don't intend to make statements about Ohio law then I guess you don't really need to become familiar with it.

    I'd try to find a resource for where it's illegal to not carry ID on you, but any Google search for it is flooded by voter ID requirements.

    So in other words you are talking out of your ass and have no proof to back up your claims? Well, at least you were right about one thing: "And I have a feeling I'll get modded troll for this post."

    --
    I want peace on earth and goodwill toward man.
    We are the United States Government! We don't do that sort of thing.
  38. Re:I can't bring myself to have much pity for them by Paradise+Pete · · Score: 5, Funny

    And BTW, just where in the United States is it illegal not to have ID on you?

    I once visited the Creation Museum and got some ID on me. Fortunately it scrubs off.

  39. Re:I can't bring myself to have much pity for them by Surt · · Score: 2, Informative

    I would be surprised if you can find a state in the united states which requires you to carry ID over 18.

    http://en.wikipedia.org/wiki/Stop_and_identify_statutes

    --
    "Who is the Journal of Quantum Physics going to believe?" --Stephen Hawking
  40. Re:Weak by default+luser · · Score: 2, Interesting

    I really havn't visited Circuit City since they stopped paying the employees commissions. When I used to enter a Circuit City, an employee would FIND ME, and try to sell me something. Many employees were actually well-informed, because they had to justify their attempts to upsell people who came in just looking for "a computer." This made purchases much easier than any other store with apathetic employees.

    The last time I stepped into one of their stores, the employees didn't give me so much as a glance. I've known for quite some time that the company was doomed, and tossing the commission structure was the first sign of the end.

    --

    Man is the animal that laughs.
    And occasionally whores for Karma.

  41. Now that Circuit City has failed... by IGnatius+T+Foobar · · Score: 4, Funny

    ...I'll bet its owners now wish they had accepted the extended warranty.

    --
    Tired of FB/Google censorship? Visit UNCENSORED!
  42. Re:I can't bring myself to have much pity for them by DisKurzion · · Score: 5, Informative

    It wasn't just the commission based sales force. My friend worked in the stock room for several years, and was making a pretty decent wage, and was up for a promotion within a month (his current supervisor was stepping down).

    He was one of those victims of the "we raised your pay too much so now we're gonna fire you."

    He wasn't even allowed to re-apply because "he was too qualified."

    Firing my friend in that manner lost them a lot of business. I also boycotted Circuit City when that happened. As did all of my other friends, and our families. All in all, that added up to about 50 people.

    I suspect that this situation was not unique, and was undoubtedly the killing blow through the heart of the weakened CC.

  43. Re:I can't bring myself to have much pity for them by WalksOnDirt · · Score: 2, Interesting

    The first place I ever saw that checked receipts on exit was the Price Club (later bought out by CostCo). Initially they took it pretty seriously. On one of our first trips there they noticed we had been overcharged for something and got us a refund!

    --
    a,e,i,o,u and sometimes w and y (at be if of up cwm by)
  44. Re:I can't bring myself to have much pity for them by PeelBoy · · Score: 4, Insightful

    No, he's upset that they fired all of their best and most experienced employee's.

    It wasn't just top sellers. It effected everybody.

    And why the hell would you fire your top sellers anyway? How retarded is that?!?!?!

    When you fire your top sellers and your most knowledgeable employee's what does that leave you with?

    It wasn't exactly a brilliant move. I'm sure it saved them money in the short run but 2 years later they're bankrupt and closing most of their stores.

  45. Re:I can't bring myself to have much pity for them by DisKurzion · · Score: 2, Interesting

    Wrong. Whether or not they check the reciepts was a store-by-store policy.

    I worked at CC for a little extra holiday cash once. The store was one of the biggest sellers on the east coast. You can bet your ass that every customer's receipt and contents of their bag was checked on their way out. On black friday. Our store took loss prevention VERY seriously.

    I personally stopped about $1,500 of merch from leaving the store, and I only did the door checks ~4 hours a week (Filling in for people on lunch breaks, etc). In retrospect, I wish I hadn't. Bastards are reaping what they sowed.

  46. In other news, Buy More stores still open by AgentPhunk · · Score: 3, Funny

    Its great if you can get Chuck from the Nerd Herd to work on your PC, but otherwise the store is full of spies, spooks, and narcs.

  47. Re:I can't bring myself to have much pity for them by MaxwellEdison · · Score: 3, Informative

    I'm a recovering former CC employee. I worked there for about 6 months. In that time I went from trainee, to top seller on the floor, to PC tech, to lead at the tech bench. That should actually sum up their biggest problem...turnover. I saw 3 salespeople, 2 techs, and 1 manager, all quality people, leave in the time I was there. I considered these people to be quality for 3 reasons: They had a good understanding of the product, they took the time to understand the customers needs, and they cared more about getting the customer the products they *needed* than the products being pushed in the latest circular. Those people left for the same reasons I did. The position was always really nothing more than a placeholder while getting the job they really wanted. And they got tired of the pressure from above to offer useless "protection plans" and other BS pseudo-warranties. Oh yeah...and the employee discount sucked on anything that wasn't already rediculously overpriced. Everytime I saw someone buy a $20 network cable I died a little inside.

    --
    -=Bang Bang=-
  48. Re:I can't bring myself to have much pity for them by Surt · · Score: 5, Interesting

    You won't succeed, as it's not legally required in any US state. Police officers can demand your name, and in some cases your address and destination. But they can't demand that in the form of state issued id. They may in some states detain you for up to 2 hours to confirm that what you've told them, and you might be able to go about your business faster if you hand over id, but you are NOT required to do so.

    They can definitely demand a driver's license if they are stopping you while you are driving.

    --
    "Who is the Journal of Quantum Physics going to believe?" --Stephen Hawking
  49. Re:I can't bring myself to have much pity for them by Bryansix · · Score: 2, Insightful

    I completely agree that the stunt with laying off the highest paid employees was bullshit. But then in your next sentence you say you drive out of your way to go to Worst Buy (Best Buy). At this point can't you realize that the retail outlet and the misinformed sales staff are not needed and buy things through Amazon or Newegg.com?

  50. Re:Best Buy take over? by vux984 · · Score: 2, Interesting

    I wonder how many Circuit Cities are not basically next door to Best Buy. This seems to be the strategy of expansion Circuit City used. Best Buy has a store, circuit city builds across the street. I guess this is good if one can compete on this basis, but really. How many appliances and stereos does a city really need? And might a better strategy for Circuit City be services a part of the City not served by Best Buy?

    Perhaps surprisingly, this is a good strategy. Often both stores next to each other actually do better than they would have without the competition next door.

    On the one hand, yes, they obviously are losing customers to the 'neighbor', but on the other hand far more people drive and come from much further away to shop there. On balance, though, it tends to work out to be a net win. The total extra traffic overshadows what they lose to the competition, and both do better.

    Its the same reason many major cities have 'auto-malls' or all the wedding dress shops are on the same street, etc. Consumers head over to do all their comparison shopping in one localized area, preferring that to driving halfway across town to comparison shop, and then potentially having to drive back again if they decide to buy what they saw at the first place.

    Electronics are the same. Put a best buy up, and it will do well... put a circuit city up next to it, and you have electronics store mecca that will attract buyers from much further away.

  51. Re:Bailout by WinPimp2K · · Score: 5, Insightful

    "AIG is, quite simply, too big and intertwined with the American financial system to be allowed to fail. Period"

    What that statement really means is that AIG is, quite simply too big to be allowed to exist. It should be broken up into many smaller entities - each with their own *separate* management and board of directors so that one or more components can fail without devastating consequences to the overall economy.

    --

    You either believe in rational thought or you don't
  52. Re:I can't bring myself to have much pity for them by Hal_Porter · · Score: 2, Informative

    Oh, come on. Reductio ad absurdum is a valid argument and on the Internet references to rape or Nazis are pretty much de rigeur.

    Anyhow it made me laugh.

    --
    echo -e 'global _start\n _start:\n mov eax, 2\n int 80h\n jmp _start' > a.asm; nasm a.asm -f elf; ld a.o -o a;
  53. Re:I can't bring myself to have much pity for them by Mozk · · Score: 2, Insightful

    Actually, about half of a store's shrinkage (losses) is due to employee theft, while only about a third is due to shoplifters. And retail stores on average lost 1.57% of their inventories in 2006. So I'm not sure where you get this "one in ten customers is a shoplifter" idea.

    --
    No existe.
  54. Re:Weak by Bootarn · · Score: 4, Informative

    I'm Goth. Just to shine light on a few things:

    • "The Crow" is hollywod crap compared to some other Gothic movies.
    • I don't cut myself.

    Futhermore, I know people who cut themselves. They're emotionally unstable, and this is nothing to joke about.

  55. Re:More Evidence that the American Consumer by tgd · · Score: 2, Funny

    If you knew anything about Slashdot

    tgd (2822) ...

    Bryansix (761547)

    *scratches head*

  56. Re:I can't bring myself to have much pity for them by philspear · · Score: 2, Funny

    And BTW, just where in the United States is it illegal not to have ID on you?

    Apperantly every time you step into a car after staggering out of a bar... freaking fascist pigs...

    (I joke of course)

  57. How to Ruin a Company from Moon of Alabama.org by Philip+K+Dickhead · · Score: 5, Informative

    Main How To Ruin A Retail Company

    A prime case study on how to ruin a retail company:

    • Profits from sales were down a bit, because some retail sales changed to the Internets.
    • Management switched salespersons from commission based pay to meager hourly wages.
    • Sales droped further.
    • Management fired long-term, experienced and expensive salespersons and hires unqualified but cheaper people instead.
    • Sales drop further.
    • Overpaid management gets fired.
    • New management finds the company is bankrupt.

    Circuit City Fires 2,000 Workers to Cut Costs, Feb. 6, 2003
    Circuit City Stores Inc. has fired 2,000 people, including salespeople at its outlet near Gateway Mall in Springfield, in a move to cut costs.

    The electronics retailer announced it is firing 5 percent of its work force and also converting commissioned sales people to hourly pay.

    Circuit City to Fire 3,400, Hire Less Costly Workers, March 28, 2007
    Circuit City Stores Inc., the second-largest U.S. electronics retailer after Best Buy Co., fired 3,400 of its highest-paid hourly workers and will hire replacements willing to work for less.
    ...
    "Firing 3,400 of arguably the most successful sales people in the company could prove terrible for morale," Colin McGranahan, an analyst with Sanford Bernstein & Co., wrote in a note today. "The question remains as to whether Circuit City can rebuild in time for the all-important holiday season."
    ...
    Circuit City shares rose 35 cents to $19.23 at 4:18 p.m. in New York Stock Exchange composite trading.
    ...
    In 2003, Circuit City switched employees from commission- based pay to hourly pay, matching an earlier move by Best Buy. That switch had a "dramatically negative impact on sales," McGranahan said today.

    Circuit City, Electronics Retailer, Seeks Bankruptcy , Nov. 10, 2008
    The petition for Chapter 11 protection in U.S. Bankruptcy Court in Richmond, Virginia, listed $3.4 billion in assets and $2.32 billion in liabilities, driving the shares down 56 percent before the New York Stock Exchange halted trading.
    ...
    Circuit City fell 14 cents to 11 cents at 9:30 a.m. before the start of trading on the New York Stock Exchange. The NYSE halted buying and selling of the shares after the stock's early plunge.
    ...
    On Sept. 29, Circuit City reported a loss of $239.2 million that was more than triple from a year earlier after sales fell for the sixth straight quarter.

    Without well motivated sales-persons any specialized retailer can only lose.

    Here the shareholders lost too. No tears for them. Why did they not stop the disastrous management plans?

    Only long term Circuit City CEO Philip Schoonover, who was only fired six weeks ago, made a fortune by ruining the company. He got more than twice per year of what successful retail chain CEO's got. From the second link:

    Chief Executive Officer Philip Schoonover was paid $8.52 million in fiscal 2006, including a salary of $975,000. Best Buy CEO

    --
    "Speaking the Truth in times of universal deceit is a revolutionary act." -- George Orwell
  58. Re:I can't bring myself to have much pity for them by WeeLad · · Score: 4, Funny

    What sort of Nazi made up that rule?

    --
    Seriously, Don't take anything I say seriously.
  59. Re:I can't bring myself to have much pity for them by Moridineas · · Score: 2, Interesting

    That actually just happened to me (well, someone right in front of me in line) at a Sam's club yesterday. The people had a cart full of items, the person checking the receipt noticed that there was an extra item on the receipt that wasn't in their cart, and they got sent right to customer service for a refund. It was pretty impressive.

  60. Re:I can't bring myself to have much pity for them by Shakrai · · Score: 2, Insightful

    *That* was likely the killing blow, not any overt boycott.

    Actually the killing blow was probably the economic crisis and the realization on the part of the American consumer that borrowing against your home to finance a plasma screen TV isn't usually a sound financial decision.

    --
    I want peace on earth and goodwill toward man.
    We are the United States Government! We don't do that sort of thing.
  61. Re:I can't bring myself to have much pity for them by Shakrai · · Score: 2, Funny

    then it's their duty to take one home to make the inventory come out right.

    Tough job, but I guess someone has to do it ;)

    --
    I want peace on earth and goodwill toward man.
    We are the United States Government! We don't do that sort of thing.
  62. Re:I can't bring myself to have much pity for them by nuttycom · · Score: 2, Insightful

    I knew that they were not long for the world when I realized that they'd hopped onto the "premium cables" bandwagon. I haven't set foot in a Circuit City since I went in casually looking for a set of RCA cables, and found that the bastards didn't even *carry* a set priced at less than $30. Not only that, but the employees were utterly obnoxious when I pointed out how stupid this was.

    I ended up getting them at Radio Shack for about $3. Any company that relies upon its customers to be absolute idiots SHOULD go out of business.

  63. Re:I can't bring myself to have much pity for them by Splab · · Score: 4, Insightful

    You can keep arguing from here to hell freezes over, but it wont make it true.

    By reading this response you owe me 1 million dollars. You had the right to not read it, but read it voluntary and now owe me a million dollars.

  64. Re:Weak by LateArthurDent · · Score: 2, Insightful

    I really haven't visited Circuit City since they stopped paying the employees commissions. When I used to enter a Circuit City, an employee would FIND ME, and try to sell me something.

    Oh, they stopped doing that? I quit going to Circuit City years ago because nobody would let me browse and shop in peace. Sometimes I don't know what I want yet. And I don't want suggestions, I want to look around the store uninterrupted.

    Employee commission is a horrible idea. It encourages pushy salesmen (salesman should NEVER "find you". They should be easy to find. They should also never offer suggestions when they see you buying something. If you *ask* for a suggestion, then they should feel free to give them). It also justifies lower salaries to the store employees since they are expected to make most of their money on commission. The knowledgeable employees will just try to steer you toward the more expensive product they can sell, regardless of whether or not they know about a better one. The less knowledgeable will pretend to know their shit and take advantage of the non-geeks who can't tell the difference anyway.

  65. Re:I can't bring myself to have much pity for them by plague3106 · · Score: 2, Insightful

    They have the right to refuse service to anyone, therefore they have the right to say you can't buy anything if you don't voluntarily submit to search.

    So could they say they have the right to punch you in the stomach too before you leave? Would that be legal in your mind?

    Posting a sign does not convey any rights, nor does it restrict them.

  66. Re:I can't bring myself to have much pity for them by CrazyTalk · · Score: 2, Funny

    Everywhere. At least under the current administration.

  67. Re:Weak by Colonel+Korn · · Score: 4, Informative

    I really havn't visited Circuit City since they stopped paying the employees commissions. When I used to enter a Circuit City, an employee would FIND ME, and try to sell me something.

    Which is exactly why I don't shop at commissioned stores when I can help it. I prefer to educate myself from an impartial source rather than have propaganda thrown at me. Those sellers were motivated enough to negotiate ridiculous deals on things like TVs, but that's only relevant to me once every ten years.

    --
    "I zero-index my hamsters" - Willtor (147206)
  68. Re:I can't bring myself to have much pity for them by Shakrai · · Score: 2, Interesting

    Of course, if the cops show and decide that you're just being an asshat, you could be in trouble for abusing the emergency line...

    How is calling the emergency line when being held against your will "abuse"? If you are attempting to leave a location and another person is preventing you from doing so then that person is committing a crime.

    --
    I want peace on earth and goodwill toward man.
    We are the United States Government! We don't do that sort of thing.
  69. Re:not really surprised by roc97007 · · Score: 2, Insightful

    Am I the only one having trouble parsing this? (Who mentioned Linux?)

    It kinda sounds like you'd put up with offensive service for the privilege of walking into a physical store to make your purchase. It's not exactly clear why. "New Egg and Amazon and Ebay"... the first two are online stores, and the third is the online equivalent of a flea market, with all the caveat emptor issues of same. I'm also having a hard time understanding the "pliers and screwdriver" comment. Buying stuff at an outlet store doesn't necessarily improve the chances of getting what you paid for -- Much of the time, all you can really tell is that there's something heavy in the box. And you *do* know about the reshrink machine in the back, right?

    I know, return policy -- but Amazon has that too (I've used it once, when what I bought was not what I received).

    "Less than competent service is traded for freedom in the market"... I'd like to reply to that, but I haven't a clue what you meant.

    Back in the old days, there used to be this thing called catalog sales. Sears and Montgomery Wards and so forth. Back in the day, catalog sales primarily existed so that people in outlying areas could still buy stuff even when the nearest physical store was a day's travel away. In this day of strip-mall saturation, we forget that our grandparents (great-grandparents in your case) had to rely on mail order if they didn't live in the city. Given a choice of brick-and-mortar or mail-order, there are several advantages of going to the store -- immediate gratification, and being able to touch and feel before making the purchase. But with electronic items, they're often just boxes that have very rigidly defined specs, or they're some common item (ipod touch, for instance) that you can see almost anywhere. Even then, the brick-and-mortar store has immediate gratification going for it but bad service can quickly negate that. If the widget is difficult to buy in a real store, there's less reason to go there. Apple (to continue with the example above) understands this, and the Apple outlets are pleasant places to shop. Circuit City did not understand this, and they're bankrupt. I guess (if I'm reading your response right) your complaint is that this gives you fewer physical stores in which to shop. This is true. But it begs the question, why would you want to go there in the first place?

    --
    Oliver's law of assumed responsibility: If you're seen fixing it, you will be blamed for breaking it.
  70. Re:Weak by chihowa · · Score: 3, Funny

    (ie, my mouse died about a year ago and all my old spares were PS/2 only - my new KVM is limited to USB. It was worth it to me to buy a replacement locally rather than wait 3-5 days to get a new one in)

    AKA, "What good is a Newegg, Mr Morden, if you have no mouse!"

    --
    If you want a vision of the future, imagine a youtube comments section scrolling - forever.
  71. Re:I can't bring myself to have much pity for them by Mr.+Slippery · · Score: 2, Insightful

    They have the right to refuse service to anyone, therefore they have the right to say you can't buy anything if you don't voluntarily submit to search.

    They can indeed decline to serve me. But in this case, they've already done so! The transaction is done. I've already bought the thing.

    --
    Tom Swiss | the infamous tms | my blog
    You cannot wash away blood with blood