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Proud cardholders, you may want to pay off and close this account
Taken from cnn.com:
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NEW YORK (CNNMoney.com) — Circuit City Stores Inc., the No. 2 electronics seller after Best Buy, filed for bankruptcy protection Monday, hoping the move will allow it to stock its shelves in time for the crucial holiday shopping season.
The move comes about a week after Circuit City said it would close 155 stores as it deals with a worsening economic downturn that has left more consumers with less money to shop. The company intends to keep its remaining stores open through the bankruptcy procedings.
Circuit City (CC, Fortune 500) said it decided to file for bankruptcy at this time to ensure that it would have “adequate merchandise flow to stores during the important holiday season.”
The retailer said consumers should continue to shop at its stores.
“Chapter 11 is not a closing or liquidation,” the company said in an e-mail to CNNMoney.com. “We remain committed to doing a better job of taking care of our guests, and making it easier to shop at Circuit City.”
For anyone that’s on the hunt for a sweet deal on a flatscreen TV, Circuit City spokesman Jim Babb said it’s “safe to assume” that consumers can expect deep discounts on TVs and other products in those Circuit City stores that are being liquidated.
In the rest of its stores, Babb said the company’s prices will remain competitive with the market over the coming weeks.
Circuit City said it is seeking approval from the bankruptcy court to honor customer programs such as returns, exchanges and gift cards. “Approval of such programs normally is granted,” the company said in the e-mail.
The electronics seller said it will still accept credit cards, including Circuit City-branded credit cards, which the company said are not impacted by its bankruptcy.
Circuit City also said it will continue to honor its warranty plans, including its Circuit City Advantage Protection Plans.
Despite these measures, one industry watcher remained unconvinced that Circuit City could still attract shoppers from here on and especially through the holiday season.
“Consumers will be skeptical about buying a $1,000 or $2,000 flatscreen TV with a warranty at Circuit City,” said Craig Johnson, retail analyst and president of Customer Growth Partners. “In their mind, there’s no guarantee that the company will still be around in the future.”
“Regarding gift cards, if you are buying a $50 gift card for Christmas, where would your comfort level be higher? At a Circuit City or a Best Buy (BBY, Fortune 500)?” Johnson said.
The company’s bankruptcy filing was also made at a crucial time of the year for merchants who are preparing for the year-end holiday shopping season.
The November-December period can account for 50% or more of retailers’ annual profits and sales. But this year, many Americans have clamped down on their shopping habits amid a weak economy and a shaky job and credit market.
Industry analysts warn that retailers will have to do whatever they can this year if they hope to have at least decent holiday sales
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Well, it’s finally happening… Circuit City, my former employer and #2 electronics store in the U-S-of-A is going under. I’m sorry, bankruptcy protection is just a fancy way of saying “we want to make as much money as we can before we are forced to close out doors for good.” Serves them right really… they canned so many of my buddies who had been there over 5 years so that they could bring in new trainees who would work for less. Assholes. Despite the state of the economy, I’ve seen this coming for Circuit City for some time. I’m glad I got out when I did because it is my understanding that they have gotten progressively worse in how they treat their employees since 2005.
My very obvious point: leaving Circuit City = good idea (those are the only ones I ever have). Burn in Hell you Jerks! (not my first word choice, but I’m trying to watch the language. Wait… did I write a$%hole up there somewhere?)
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