Electronics giant Circuit City has filed for chapter 11 bankruptcy protection. They do plan to stay in business while they fight to stay alive. What happened you ask? Simple:
The chain, with 721 stores in the U.S. and 770 in Canada, has said competition hurt sales, especially at older locations in lower-income neighborhoods. Amazon.com Inc. and other Web-based retailers of computers, televisions and music also have lured customers away.
On Nov. 3, the company said it would close a fifth of its U.S. stores and renegotiate leases on some locations to conserve cash. The closings will leave it with about 566 U.S. stores and trim about 20 percent of the 43,000-strong workforce. Circuit City also said today it cut 700 jobs in its regional and district store support department.
The question I have is this. CompUsa went the way of the dinosaurs not too long ago. Now these guys. Given the economic climate, who’s next?
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This entry was posted on November 10, 2008 at 9:31 am and is filed under Commentary with tags Circuit City. You can follow any responses to this entry through the RSS 2.0 feed.
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Oh Noes! Circuit City Goes Titsup!
Electronics giant Circuit City has filed for chapter 11 bankruptcy protection. They do plan to stay in business while they fight to stay alive. What happened you ask? Simple:
The chain, with 721 stores in the U.S. and 770 in Canada, has said competition hurt sales, especially at older locations in lower-income neighborhoods. Amazon.com Inc. and other Web-based retailers of computers, televisions and music also have lured customers away.
On Nov. 3, the company said it would close a fifth of its U.S. stores and renegotiate leases on some locations to conserve cash. The closings will leave it with about 566 U.S. stores and trim about 20 percent of the 43,000-strong workforce. Circuit City also said today it cut 700 jobs in its regional and district store support department.
The question I have is this. CompUsa went the way of the dinosaurs not too long ago. Now these guys. Given the economic climate, who’s next?
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This entry was posted on November 10, 2008 at 9:31 am and is filed under Commentary with tags Circuit City. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.