Circuit City is Closing, Now What?: Your Guide to Circuit City's Liquidation

Ahh! Circuit City is closing. If the recession didn't feel real before, Circuit City's liquidation sale should shake you out of your denial. On Friday Circuit City (the country's second largest electronics retailer) announced that it would begin its liquidation sale after filing for bankruptcy on November 10^th. Circuit City operated 567 stores in the United States, making this auction the biggest in recent history. So, what does Circuit City's closing mean for consumers?

Does Circuit City's liquidation sale mean good bargains for you?

Not necessarily. At least not at Circuit City. What the average consumer doesn't know is that before stores like Circuit City start slashing prices, they jack them up. Sometimes higher than the price they were selling them for before the liquidation sale. So you might be getting 50% off, but its in relation to a significantly inflated price. And by the time the prices start to really fall, all the good stuff will be picked over.

But, since Circuit City is a major retailer with nearly 600 stores, the pull of their auction will force other retailers to reduce their prices to retain some of their customer base. So, I would advise shopping at some of Circuit City's competitors. Unless of course, you are in possession of a Circuit City gift card.

Gift Cards

My uncle, who hates gift shopping, gives out Circuit City gift cards every year. That means that there are at least 20 people in my family who now have to shop the liquidation sale, because after all the stores close their Circuit City gift cards will have no more value. None at all. So even if liquidation prices don't always offer the best prices, you'll have to spend your money while you can.

Circuit City Credit Cards

All Circuit City Credit Card accounts will most likely be transferred to another electronics retailer. Hopefully it will be one that you like, but no promises have been made. But, Wal-Mart took on all of the customers of Montgomery ward when they declared bankruptcy, so hopefully Best Buy or some similar retailer will take up the slack.

Returns

If you got something that you didn't want from Circuit City, you only have until January 30^th to return it, so I suggest heading over there pretty soon or you'll be stuck with that VHS player forever. Or sell it on e-bay to a nostalgic electronics connoisseur. If you buy anything after January 16^th, you're stuck with it as well so try to avoid impulse buying during the sale.

Extended Warranty

Circuit City offered a Circuit City Advantage Protection Plan on several of its items. Lucky for you, these are handled by a third party so they are still valid.

Circuit City is still working on my computer

Tough cookies. Your computer now belongs to the repair tech. Just kidding, Circuit City will complete all computer repairs and the computer will be returned to you. However, no new repairs will be accepted at Circuit City.