Goodbye, Circuit City. You Will Be Missed.

January 17 2009No Commented

Categorized Under: Misc. Gadgets

Circuit City Stores, Inc. (OTC:CCTYQ) announced today that they are asking a bankruptcy court to allow them to close all their stores and sell off all their assets.  What cause Circuit City to go downhill?  Circuit City staff struggled to provide technical advice to customers.  They stopped investing in hiring and training programs.

Meanwhile competition like Target, Best Buy, and Wal-Mart stepped up their technology offerings and trained their employees to properly explain specifications of their products.  About 34,000 people will be out of jobs as a result of the bankruptcy.

InterTAN Canada Ltd, a wholly owned subsidiary of Circuit City will remain open and will not be part of the liquidation.  InterTan has about 765 stores in Canada.  Circuit City attempted to find a buyer including Golden Gate Capital and Mexican billionaire and major shareholder Ricardo Salinas Pliego.  But it did not work out.

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