circuits

Circuit City execs killed the company

Why is it so hard for everyone discussing Circuit City's Chapter 11 filing and New York Stock Exchange stock suspension to tell the world what really happened with this company?

No, Circuit City isn't dying because of the credit crunch, and there's no way we can blame its demise on the preferential treatment competitors like Best Buy are receiving. And we certainly can't blame it on the online-retail industry.

For some reason, every story I see written about the topic gives the company line--Circuit City is forced to file for Chapter 11 protection because of the "tight credit market"--and yet no one tells it like it really is: Circuit City is dying today, and will be a mere memory in just a few short months, because the company's executives ran the business into the ground.

Some believe that with the online onslaught being what it is, there's really only room for one major electronics retailer in the brick-and-mortar space. Anyone who believes that has no grip on reality.

There is room for multiple big-box electronics retailers. If Circuit City executives established a business model that competed with Best Buy's instead of trying to copy it, none of this would have ever happened, and we would be wondering which retailer will have the better holiday shopping season.

Instead, we're digging Circuit City's hole.… Read more

Meet the newest odd couple: Hollywood & Google

It may be the start of an entirely new page in the often rocky relationship between Google and Hollywood. After a couple of years of verbal sniping and legal threats, the two sides are moving to resolve their long-running disputes. CNET News' Greg Sandoval stops by to explain what's behind the sudden rapprochement as well as Google's new interest in hosting professionally made, long-form video on its YouTube subsidiary.

Listen now: Download today's podcast

Monday's stories:

MGM first to post full-length features to YouTube

Internet attacks to grow more potent

Circuit City files for bankruptcy

Google starts fixing Android 'reboot' bug… Read more

Buzz Out Loud 849: Who you callin' 'barmaid,' larper?

A friendly member of Buzztown calls up to tell us how he named his Dungeons and Dragons characters after the core Buzz team. It all seems fine and dandy until he gets to Molly. Ahem. Not cool, guy. In actual news today, earbuds can be dangerous to your health (if you use a pacemaker), Circuit City files for Chapter 11, and the iPhone tops the RAZR as the most purchased U.S. consumer handset. Take that, RAZR!

Listen now: Download today's podcast

EPISODE 849

Your earbuds could stop your pacemaker http://www.newsvine.com/_news/2008/11/09/2091277-music-headphones-can-interfere-with-heart-devices… Read more

FAQ: What Circuit City's bankruptcy means for consumers

Just a week after saying it was closing some stores to get its finances in order, Circuit City on Monday filed for bankruptcy protection. It will help keep creditors like Sony, Microsoft, Toshiba, and many others who have yet to receive payment for their products, at bay while Circuit City tries to get back on track. The company has also secured a $1.1 billion debtors' line of credit to keep stores open and pay its employees.

The timing, for a retailer, couldn't be worse. It's not exactly assuring that right as we're about to start holiday shopping one of the main places for consumer electronics gifts seems unstable. So what does this mean for consumers? Here are some important questions and answers about what Circuit City's current situation means for you.

Q: Does this mean less choice for places to shop for the holidays? A: Actually, no. Circuit City will be open for business as usual. The company did announce last week that it would be closing 155 stores, which will go on as planned, but 566 of its stores will remain open. Whether they will be fully stocked is another question, but Circuit City says that its new line of credit will help keep its shelves full.

Q: Will there be any staff around to answer my questions? A: Circuit City says it's reduced its support staff in district and regional roles, in addition to the positions eliminated at its stores currently being liquidated. Overall, there will be 20 percent fewer employees company-wide, but the retailer insists its stores will be well-staffed during the holidays. … Read more

The 404 224: Where we don't have time for Wilson's asinine stories

We start today's show a little late today, mostly because Wilson chooses the worst time to launch into a personal anecdote. We love you, Tilson Wang. Anyway, we'd like to congratulate Christina and Rolf for winning our LittleBigPlanet/Motorstorm box art contest! They don't have Photoshop so they got creative with Paint and made an awesome collage of 404 inside jokes! See if you can spot them all in the picture. Thanks again, guys! E-mail your address to the404{at}cnet{dot}com and let us know which game you want! Later on in the show, we get into a discussion about our country's depreciating credit, the best way to finance a new laptop, Circuit sh*tty closing its doors, our president-elect's views on the importance of parenting gamers, and talk a ton of trash on Heroes and Mr. Freeze from Batman and Robin. ICE TO MEET YOU.

Episode 224 Download today's podcast … Read more

Digital City: Episode 6

It's our first post-election show, and we discuss electronic voting -- or the lack of it -- plus tough times for Circuit City, and a new Times Square store where you can build your own robot. Listen now: Download today's podcast

Circuit City files for bankruptcy

Struggling electronics chain Circuit City announced Monday that it has filed for chapter 11 bankruptcy.

Chapter 11 allows a company to hold off creditors while it attempts to restructure its finances. Circuit City said Monday that it has negotiated a commitment for a $1.1 billion debtor-in-possession revolving credit facility to supplement its working capital.

Circuit City announced earlier this month that it would shutter 155 stores and lay off 17 percent of its workforce. The retailer said Monday that it will eliminate an additional 700 positions in addition to the reductions resulting from the store closings, bringing the total … Read more

Let the liquidation begin: Circuit City starts sales at closing locations

I have never been a fan of Circuit City, so I wasn't exactly broken up when it announced it was closing 155 locations. (I mean, I don't want people to lose their jobs, but I've never had a good experience shopping at "the City.") However, with those closings comes inventory liquidations on home and office electronics at 154 locations (PDF) with discounts up to 30 percent.

Like most inventory clearance sales, though, I wouldn't expect to walk in and find 30 percent off that digital camera, home theater, or HDTV you've been eying. … Read more

Say good-bye to Circuit City

When Circuit City announced on Monday that it was closing 155 stores amid financial trouble, it didn't surprise me at all. If you've been following this page over the past year and a half, you know that I've been saying since the beginning that Circuit City doesn't have the chops to stick around and compete with Best Buy.

And although yesterday's announcement was probably a shock to some at the company, it shouldn't have been. For the past few years, Circuit City has been the victim of one of the steepest declines this industry has ever seen.

Right now, the stock is in danger of being delisted from the New York Stock Exchange, thanks to a share price that can't make its way above the $1 mark. In fact, even after announcing the closure of 155 stores, the company's shares rose only 10 cents in daytime trading, bringing its stock price to 36 cents per share.

We can't forget, upon analyzing Circuit City, that this isn't the end of store closures, nor the beginning of financial success. The company is now going to engage landlords in negotiations to "aggressively" reduce rental rates in stores nationwide.

Once that initiative fails--and it will--Circuit City will have no other option but to close even more stores as it tries to find the right balance between size and financial stability.… Read more