Circuit City Faces Final Decision Today
By Alan Wolf -- TWICE, 1/16/2009
Richmond, Va. — The fate of Circuit City could be determined today as the company’s financing runs out and a federal bankruptcy court considers bids to break up the business or buy it whole.
According to a report today in The Wall Street Journal, three parties have emerged as contenders to acquire the No. 2 CE specialty chain. As was widely speculated, they include Mexican billionaire Ricardo Salinas Pliego, a banking, broadcasting and retail tycoon who bought up 28 percent of Circuit City shares last fall.
Also entering the auction was Golden Gate Capital, a San Francisco-based private equity firm. The Journal cited “people familiar with the situation” who said the investment group has requested a 30-day extension to analyze the retailer’s books.
The third bid came from liquidators Gordon Brothers Retail Partners and Hilco Merchant Resources, which together would sell off Circuit City’s inventory in a final fire sale. The paper’s sources said this scenario would be the likely outcome.
The bankruptcy court is scheduled to convene here this morning at 10 a.m.
Clickhereto read TWICE's complete coverage of Circuit City.
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Hey John,
there are plenty of alternatives to the bix boxes. Call an AVAD distributorship and they will help you find a qualified independent dealer that will not only give you better service, but in a lot of cases will be very competitive price wise with the big boxes.
Brian Schumacker - 2009-16-1 11:22:00 EST -
I don't want to shop at Best Buy or Walmart for my electronics. I don't want to shop at Circuit City either, I'd just rather shop there than any of my alternatives. Circuit City is poorly managed, their workers are poorly payed and unmotivated and they just don't feel like they really want to stay in business. Best of luck to the soon to be unemployed folks. I truly hope we come out of this mess soon.
John Wolf - 2009-16-1 10:25:00 EST -
I sent an e-mail to the editor of TWICE about 5 years ago, when CC dropped their commission sales force. In part I said that the combination of eleminating the appliance dept and dropping the commissions sales, was a path to desaster. I stated that "CC had built its' reputation and client base on the knowledge of the sales people and the quality of their customer service." This never got a response, and now all the analyists are shocked at what is happening. I say that the pendulum needs to come back to the attitude of the 70's and 80's as far as how to motivate a salesforce, or e-commerce will be the dominant driving force on product sales. Before anyone says "so let's move on and start 'e-trading'" you better be prepared to not only compete against your local companies but be prepared to compete globally. That, oh wise business entrepreneurs, is only for the seleted few.
John Kufahl - 2009-16-1 10:19:00 EST -
Lets hope for an extention! Liquidation isn't good for anyone , there are a lot of good people who will be out of a job!~Liquidation won't help our economy either will another couple thousand on people on unemployement.
Steve "Tote Hauler" Edgin - 2009-16-1 10:19:00 EST
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