Circuit City goes on auction block today
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By Staff Reports
Published: January 13, 2009
NEW YORK -- Circuit City Stores Inc. goes on the auction block at noon today.
Potential buyers will bid on the troubled Henrico County-based consumer electronics company as a whole, per store or on individual assets.
The auction, being carried out in the Manhattan offices of Circuit City Stores Inc.'s attorneys, is scheduled to finish tomorrow.
According to an order filed yesterday by U.S. Bankruptcy Judge Kevin Huennekens, when the auction is completed the company must post the results on the retailer's bankruptcy Web site, http://www.kccllc.net/circuitcity.
On Friday, the chain will seek the judge's approval for a deal or deals, or to get ongoing financing, if necessary, according to a court order.
In yesterday's court order, Huennekens also allowed the chain to enter into a "stalking horse agreement," which basically sets a price floor, so the bidding could not fall below that amount.
If the company fails to find a buyer or secure additional financing, it could be forced to liquidate, the retailer said.
Circuit City has been losing money for nearly two years and struggled through the recent holiday shopping season. It filed for bankruptcy Nov. 10 after announcing it was closing 155 stores and cutting about 700 jobs at its headquarters.
At a hearing late last month, an attorney for the chain, Gregg M. Galardi, said sales since it filed for bankruptcy protection were down as much as 50 percent from the previous year.
The chain is expected to announce its fiscal third-quarter earnings this week.
Shares of Circuit City closed yesterday at 33 cents, up 2 cents from Friday.
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Reader Reactions
Posted by ( tangerinebeth ) on January 13, 2009 at 1:43 pm
Being a local business doesn’t give one free rein to be racist, sexist, and conduct poor business. We Richmonders, like all folks, expect respect and quality service for our hard-earned money. Sure never got that at Circuit City. Someone should go in and record everything at CC to use as a “DONT DO THIS” example in business school. Whoever buys it should eliminate all that was bad about that business and start from scratch. Eliminate the LOUD stereos paying so loud I can’t hear the clerks (who were all hiding playing video games anyway), eliminate the sales managers who told salesmen not to talk to women customers til their husbands gave them permission to buy, eliminate the racist salesmen who’d avoid minorities who come in the store. Get rid of the slacker salesmen. I went in a store last weekend and got a sarcastic comment from the salesclerk. Bye bye!
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Posted by ( cylucente ) on January 13, 2009 at 12:34 pm
It’s always sad to see the mean-sprited things that Richmonders will say about one of the few local businesses left in the area. Good riddance? Tell that to the potentially 34,000 employees that may be out of a job (including myself), I’m sure they will feel much better.
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Posted by ( sonny ) on January 13, 2009 at 12:12 pm
Good riddens and quite deserved. All they do is take up space, so sweep out the old and bring in the new. As a former employee of one of it’s poorly managed subsidiaries (12 supervisor changes in a 3 year time period), I left when things started going down hill and a couple years before the subsidiary was sold. It was just things to come reflecting on the poor management of the Circuit City Corporation and not keeping good talent and not hiring good talent. That was definitely reflected in the store as I have tried to shop many times in one of the most disorganized and lack of customer attention stores, only to leave without buying anything out of frustration (I have many friends who would agree). Circuit City is done and just needs to shut down. Best Buy and other retailers have finally taken over and provides better service.
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Posted by ( 1twenty13 ) on January 13, 2009 at 11:00 am
These stores cater to the “I want it now” crowd. Anything sold there can be bought on the internet cheaper anyway, but you’ll have to wait for it. Order online and skip the sales tax, high prices, and terrible customer service. There’s always that other Virginia-based electronics company - Crutchfield.
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Posted by ( Concerned ) on January 13, 2009 at 10:19 am
Yes, CC has made some bad business decisions. But it is still sad to see a local company on the brink of extinction. My thoughts are with the employees. Call me crazy (I prefer to think I’m an Optimist), but I am still hopeful Circuit City can continue to exist in some shape or form.
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Posted by ( dg ) on January 13, 2009 at 10:10 am
Even if CC survives in some form it’s only real competition,Best Buy,will come out of this the winner.With no competitor,they will no longer feel the need to be price competitive.No other retail company,not Walmart or any other,focuses on the business segment they are in.You will pay more.
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