Monday, November 10, 2008

Circuit City Files For Bankruptcy (Chapter 11)

Circuit City has filed for chapter 11 bankruptcy over fears that they won't be able to bring in supply in time for the Christmas season. (Chapter 11 is the type of Bankruptcy that Kmart filed a few years ago... they're reorganizing instead of going out of business) Still, this is a reminder, if we've mentioned it before (and a warning if we haven't) that gift cards are the worst gift to buy this Christmas and if you get a gift card, use it quickly. We're coming up on the most profitable time for retailers. The Christmas season is what is keeping some companies open, after which they will close their doors. During a chapter 11 bankruptcy businesses are *not* required to honor gift cards.

2 comments:

Ray said...

There are layoffs but I still see thousands of high paying jobs.

www.linkedin.com (professional networking)
www.indeed.com (aggregated listings)
www.realmatch.com (matches jobs based on your skills)

Good look to the circuit city folks!

Nomad said...

Honestly, the biggest evidence that CC is dying is that I have not been inside one in almost a year. The last time I bought ANYTHING from CC was when I needed something same-day and did a "buy online, pick up in store" deal. I am a big gadget buyer and used to be in CC all the time. But their people stopped being knowledgeable and their sales stopped being competitive

If CC wants to rebound, they need to return to what made them big originally. Skilled and knowledgeable staff who really understood their merchandise, and could explain why it was better than what Best Buy or Wal-Mart were offering.