Circuit City Auction Begins Today
By Alan Wolf -- TWICE, 1/13/2009
New York — Circuit City's attorneys will begin accepting bids for the bankrupt consumer electronics chain today at noon.
The two-day auction process, which will be held at the lawyers' Times Square offices here, was delayed for 24 hours as the retailer received “expressions of interest” from potential bidders to keep the company in business.
The company said it is also needed the additional time to continue exploring financing alternatives.
The auction will begin today with bids for the chain's “miscellaneous assets,” which include inventory, property, Internet operations, Firedog assets and corporate airplanes. Wal-Mart is among six bidders for Circuit City leases.
A store-closing auction for all inventory, fixtures, furniture and equipment at Circuit City’s retail stores, warehouses and distribution centers begins Jan. 14 at noon.
The critical “going concern” auction, which will determine whether Circuit City continues operations, begins Jan. 14 at 3 p.m. Two “highly motivated and interested parties” have largely completed due diligence on the company and are close to making a deal to buy the business or provide additional financing as it restructures, the retailer revealed last week.
All offers will be evaluated by Circuit City and representatives of the creditors' committee, and the highest bidders could enter a final auction on Jan. 15. A hearing to approve the sale will be held in a Richmond, Va., bankruptcy court on Friday. That's when the company's credit facility expires and the retailer will be unable to continue operations.
Circuit City said in court papers that allowing it to continue operating on a national or regional basis through a buyout or alternative financing would be in the best interests of the company and its creditors. It said it is “optimistic” that it could strike such a deal with one of its as yet unnamed white-knight bidders.Speculation on their identities centers on Mexican billionaire Ricardo Salinas Pliego, a banking, broadcasting and retail tycoon who controls 28 percent of Circuit City shares, and dissident shareholder Mark Wattles, who forced a shakeup of the company's board and senior management and may be looking to meld it with Ultimate Electronics.
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..... Circuit City goodbye, BestBuy will be next and I hate that company also, then everyone will look and say damn I gotta goto Walmart for my Home Theater experience!!! LMAO !!! HA!HA!KA!HA!HA! Really think about it, is really sad.
Concerned Citizen - 2009-23-1 00:58:00 EST -
Wow - Buyer Beware with Circuit City's "Going out of Business" sale. I bought 2 CDs at the Sterling, VA store with a sticker price of $12.99. After I paid and looked at my receipt, they charged me $15.99. I asked the manager if they marked the items up and he said yes. I told him I want my money back and don't want to buy them at this price. He told me "all sales are final". I asked for his name and he would not tell me. I asked the other sales reps for the manager's name and he told them not to tell me. Be VERY careful, they just don't care which is why they are going out of business. I was a long-time customer but now I say Good Riddance.
Ted Potz - 2009-18-1 20:27:00 EST -
I hate to see CC go. It's bad for the entire CE industry to lose a company of that size. Say what you will about what got them to this point but the bottom line is that ALL retailers need to learn from CC's history or they will be doomed to repeat it... I once heard it said the consumers don't need another store in their neighborhood but rather they need a better way to shop. Take a hard look at which retailers can do that by making customer service their priority, not a flashy, hollow statement or advertisement and you will find the most successful retailers in our industry.
Frank - 2009-14-1 20:41:00 EST -
This carp that CC is going through now started way back when Al Sharpe (Former CEO) was re-placed with Alan McCulough. This guy did away with appliances in the stores and cut out all the commisioned employees. Then enter Phil, what a joke! I remember going to these "Hype you up" meetings at corporate when the cash flow was in the millions of dollars and the web site first started. In 2002 they broke the news to the commisioned people in the stores, and of course, they left. Since that time, any customer that was devoted to CC and went back for a purchase left the store and thought twice before coming back. Unfortunately I am still working for these people due to the present economy and it''''s all I can do to mentally prepare myself to get up in the morning to work for ignorant people that have not, nor will never listen to any suggestions that anyone suggests to them. Common sense would dictate that, you get what you pay for, and since they stopped commisioned employees that actually cared for the customer, they hired ding-bats off the street for $8:50 an hour, more-over, threaten to fire them if they don''''t sell a warranty! People should NOT have to go to work for ANY employer with threats over his/her head, unless they are really screwing up, and put up with this crap.
Ryan - 2009-14-1 20:20:00 EST -
Circuit city has made their own bed to collapse on. They had a chance
in the late 90''s and early 2000''s to make a move to seal their
dominance in the world of home theater. Instead they pushed the divix
video format on to their customers, who were confused about dvd''s to
begin with. They had a chance to educate customers and build
relationships with them, instead they only angered them.They missed
the early boat on HDTV while pushing DIVIX and lost the home theater
market to best buy and local stores.Then they got rid of some of their
most valuable employees by just letting them go, twice and in turn
They lost their slim edge in perceived knowledge and service to the
competition. Now with install and training services being a clear profit
margin as TV"s become commodity items with shrinking margins
joining, pc''s,laptops and digital cameras they have no credibility left to
take advantage of the new big box retail sales avenues.If you look at
their stores they have no audio selection to speak of, nor the
knowledge to sell it, as audio sales have declined nationwide. Look if
they find someone to buy this company they have to reinvent
themselves. Circuit city cannot just try and clone best buy, they have
too big a market share. Circuit city has to give customers different
reason to comeback.I am not sure there will ever be a reason. Too bad
Circuit city had a chance to do something special and expand
knowledge and customer service to keep customers, instead they lost
their way.
chip douglas - 2009-14-1 15:22:00 EST
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