Circuit City Wind-Down: What Happens Now
By Alan Wolf -- TWICE, 1/20/2009
Richmond, Va. — Circuit City’s four liquidators have until March 31 to sell off all merchandise and fixtures in the chain’s distribution centers and 567 remaining stores.
The liquidators have been authorized to retain store employees as needed and provide retention bonuses of up to 10 percent, court documents show. Corporate employees, numbering about 1,500, will wind down headquarters operations over the next two months and will be paid during that time, although a skeleton crew will likely remain for the additional one to two years it could take to completely shut down the business.
By Jan. 17 Circuit City’s e-commerce site had come down, replaced with a notice thanking “all of the customers who have shopped with us over the past 60 years … Due to challenges to our business and the continued bleak economic environment, Circuit City is going out of business and the company's assets will be liquidated to pay off creditors.”
According to the notice, gift cards will be honored at full value and returns will be accepted on purchases made prior to Jan. 16. Repair work already underway will be completed, but no additional jobs will be accepted. In addition, the liquidators can continue to sell extended warranties, which are administered and backed by Circuit City’s longtime provider Assurant Solutions, although all home and car installation services have been suspended.
Circuit City is still looking to sell its 765 Canadian stores as a going concern, and is expected to receive formal bids for the former RadioShack franchise operation by Jan. 23.
The retailer will also likely sell its online operation, its Firedog service business and, ultimately, its brand, which will keep the company alive in name only.
Clickherefor all the latest Circuit City news.
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Worked for vendors selling first to Ward's Co and then Circuit City, for almost 30 years.
It is sad to see the company go away.
With their great history as a major US retail institution, the government probably should have considered a bail out for Circuit City, but too late now.
There were obviously some management decisions that might have been better, but over the 30 years that I dealt with them, one thread ran through the fabric at CC. The buyers and support teams were top quality and always a pleasure to work with.
I would like to wish those remaining the best of luck finding new positions within or outside the industry.
J. Sherman - 2009-21-1 11:15:00 EST -
Hi
My name is will dodsworth, and I am the top seller in the in the district for 775 ... Ive worked "for" the source and worked "with" Radio Shack for many years and since we had a name change, my customers still refer to our store as Radio Shack! I think this company has lost alot of money and opportunity by making such a change, and I respect Ron for everything he is doing for the company! I just hope he gives us our old name back so we can all start making some more money! lol
Thanks!
William Dodsworth - 2009-20-1 18:19:00 EST
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