Circuit City Short Circuiting 155 Stores

3 November 2008

If you've recently ordered something from American electronics giant Circuit City, it's now time to give them a call and check where your new gadget has been shipped to.

Inside rumours have spread that electronics giant Circuit City is closing down 150 stores and withdrawing from 12 markets effective today as an alternative to bankruptcy. official announcement will be made today to the press, although Circuit City’s plans to downsize were no secret.  The Wall Street Journal reported on that the retailer was considering closing 150 stores on October 20. Furthermore, Circuit City was threatened with removal from the New York Stock Exchange on October 31 because their stock price averaged below $1 for a month. The stores that are closing will have inventory liquidated and all warranties can be serviced at stores that will remain open.

This sudden news, however, has still managed to shock employees who were not aware of the company’s financial woes. Associates in Chicago were told that they would be attending a “holiday kickoff” meeting and were instead treated to layoffs. They received a letter you can read here from Director of Associate Relations Steve Saunders on November 2 alerting employees that their termination would be effective on or before December 31. Many employees have reported that layoffs will begin in their stores as early as Tuesday, November 3.

For those lucky few heading to the United States in the coming weeks, that inventory liquidation could mean some sweet hot deals in the near future.  So let us know if you get lucky!  You can already use Circuit City's online store locator to determine which stores are closing, as their listings have been removed.

[The Consumerist]

TOPICS:   Debt

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