How 155 Circuit City Store Closings and Other Circuit City News Fallout Affect You
Circuit City Advantage Protection Warranties
Third quarter results filed 12-21-07 disclosed that a primary means of income for Circuit City were its extended warranties. At that time $67.4 million were taken in by these warranty sales. The good news is that - according to a Q&A sheet released by Circuit City in the wake of its Circuit City Chapter 11 bankruptcy filing - all Circuit City warranties will remain in effect and will be honored as they are underwritten by an unaffected, third party.
Circuit City Gift Cards and Merchandise Returns
Consumers living in areas hardest hit by store closures may find that gift card and merchandise returns are going to be harder to accomplish. At this point it is uncertain how this particular aspect of the business will resolve itself, and although the company is hopeful that the bankruptcy court will authorize a program catering to you, it is up in the air.
Circuit City Store Closings List
The store closing list released by Circuit City and dated 11-03 is substantial. It cuts down the number of operating stores from a high of more than 668 to now only 566.
There are two closures in Alabama, one in Arkansas, 13 in Arizona, here in California 24 stores will close their doors, three will close in Colorado, one in Connecticut, seven in Florida, 19 in Georgia, 14 in Illinois, four in Indiana, two in Kansas, three in Kentucky, four in Louisiana, three in Maryland, seven in Michigan, four in Missouri, one in Mississippi, one in North Carolina, two in New Jersey, one in Nevada, eight in New York, 11 in Ohio, four in Tennessee, nine in Texas, three in Virginia, one in Washington, and one in Wichita.
For Californians the most crucial store closing will be the Circuit City store 422 in Compton, an area that is already in precarious socioeconomic dire straits and can ill afford to lose a big anchor retailer in its attempt at revitalization and gentrification.
In a letter to shareholders and customers, Circuit City emphatically states that it is not going out of business, but instead intends for the remaining 566 United States stores to operate "normally."
Sources:
http://newsroom.circuitcity.com/releasedetail.cfm?ReleaseID=283007; http://files.shareholder.com/downloads/CC/461660694x0x248179/7745C9AA-23D9-427E-A563-4D10651F5344/111008%20Q; http://www.ce.org/Press/CurrentNews/press_release_detail.asp?id=11485; http://files.shareholder.com/downloads/CC/461660694x0x245809/2BFAC9D9-6CEF-4027-9E51-1C635F42F7A7/110308%20Store%20Closing%20List.pdf; http://files.shareholder.com/downloads/CC/461660694x0x248170/252ADBF7-03CC-4D9E-A5FF-EA3822D21B06/C1-Letter%20to%20Guests%20FINAL.pdf
Published by Sylvia Cochran - Featured Contributor in Automotive, Politics, Travel and Lifestyle
Sylvia Cochran works out of sunny Southern California and has been freelance writing -- full-time -- since 2005. SEO-optimized Internet copy includes news analysis, political Op/Ed and parenting as well as a... View profile
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13 Comments
Post a CommentThe stimulus package is intended to increase consumer spending. Your government is the racists. They give broke people money, with the expectation of them spending it and not putting it into a college fund or savings bond. If anyone is racist, it's the politicians that have no faith in the economic intelligence of it's constituents. Read a book.
=)
And now DHL is doing some of the same. Apparently, these big companies do not have the confidence in the new President-Elect to even take a "wait and see" attitude for a couple of months. This is what is wrong with Obama's "tax the big business plan". People just don't see it. It's going to put workers on unemployment lines more and more.
Good reporting on this~
chicago too. what next? Roberta Baxter
very nice here!
Nice article, Sylvia. KMart managed to emerge from Chapter 11 four years ago and currently is spear-heading the return to sound middle class economics with its renewed "Layaway" plans - where you don't get the merchandise until you've paid for it in full over time. Circuit City could not compete with megastore Best Buy or the WalMart/Costco/Sam's Club model despite their prices, service, etc. The repercussions will be large for many communities. Stark contrast to our bailouts of failed free marketers Lehman Bros. AIG, GM, etc. I hope, like KMart, Circuit City can restructure and survive.
The two stores I called today were still honoring gift cards. However, I'm more of the mind that people should use them quickly. I mean, some companies just don't emerge from bankruptcy (think Linens and Things) so why take a chance and hold on to a card for months on end.
Charles Drengberg is a racist sob douchebag.
Super job, tough situation..