This story will kill my father who thinks the sun rises and sets with Circuit City.
After failing to secure financing from creditors and lenders, bankrupt electronics vendor Circuit City Stores Inc. said Friday that it will liquidate, joining the list of retailers like Linens ‘n Things that are closing up shop due to the economic downturn.
The liquidation will affect more than 30,000 employees, adding to the rising number of U.S. job losses, which last year hit their highest level since World War II. As of Dec. 31, Circuit City had 567 stores in the United States and about 765 stores and dealer outlets in Canada.
Even before the recession and plunging consumer confidence led shoppers to curtail discretionary spending, the retailer struggled with declining traffic and sales. Not only has Circuit City been hurt by poorly located stores, its plight worsened in the wake of a failed management strategy to fire higher-paid employees, who were able to push more profitable sales. The move further hurt customer service and alienated shoppers, according to analysts.
The collapsing credit markets and declining economy has all but shut off financing for bankrupt companies facing increased competition. Other retailers — including Goody’s Family Clothing, Mervyn’s, Steve & Barry’s and Sharper Image — have liquidated or are shuttering operations. Bankruptcy experts have said the lack of debtor-in-possession financing will leave more companies with no option but to liquidate assets.
Na Na Na Na , Na Na Na Na —Good bye!
Wow. Now Sharper Image–that’s a chain of stores that I always thought was nothing but useless crap and gratuitous gadgets. I’m kinda’ “glad” they’re going under…!
I agree…always thought it was crap for people with more money than brains…..