I guess watch out for sales and if your local store will be around for returns.
Their stock is at 26 cents.
We don't have CC here in Quebec, but all our Radio-Shacks have been rebranded "The Source, by Circuit City" a few years back.
Anyone know how the Canadian chain will be affected by the failure of the US home company?
From what I've read and heard this recession we are in is GLOBAL so, watch your local papers for news. If one goes (or in this case 155 stores) the rest are sure to follow.
The other shoe fell today for CC. It filed for bankurptcy. I don't know about the last few days, but last week its stock was at 26 cents/share.
I feel bad for the folks who are losing their jobs, but for the company itself: see ya!
It's now at 2 cents a share. I was thinking of buying a thousand shares for $20 + the $4 purchase cost just in case they make it and it gets back up to $30 a share again. That would be a return of $30,000 on a $24 gamble.
Better odds than going to the casino!
I think Circuit City is just the tip of the iceburg.
How can any economy, especially a bad one support all the stores that are everywhere? We didn't have the repetitive marketing of stores when we were kids (way back then when they sold things in tents). When there's a Home Depot every five miles...how can they all stay open?
I said way back in the '80's when there was an explosion of Store expansion that the economy can't support it. That's why the stores now are made of foam and cardboard...easier to tear down.
Now if a particular shopping area has three big stores go out, how long before people stop going to the stores still in business. Perception is everything and if one perceives an area is dying, you just go somewhere else. It's like a mall that has too many boarded up storefronts, people soon flee. Besides, how much credit do Americans have on there cards yet? Haven't we realized we have to pay them off yet?
Sorry to say many people are losing their jobs and the stock market is hurting the others.
Better odds than going to the casino!
For 20 bucks you can buy a lot of toilet paper, get some Slim Jims for the other 4 bucks so you have a good reason for the paper in the first place.
I agree with everyone when they say that the quality of the service is terrible in most Circuit Cities, but because of the shutting down of 155 stores my brother and two friends are going to be out of a job at the end of December.
I have 2 gift cards for a Local coffee house that went Belly up, and I forgot to use them.
The financial crisis IS global (as for the recession, depends on your definition), but depending on the corporate structure of CC, the Canadian stores could survive.
The local news last night reported on the CC situation and concluded that for now, the "The Source" stores were still profitable.
The world is all upside down right now and unless they bring the cost of fuel down and keep it down which in turn, will stimulate the economy, then we are all SOL! My local bread bakery just folded after being in business for 52 years, not for lack of business, but for the cost of fuel to deliver their breads to market. Another GREAT bakery product that folded up is Mother's Cookies!! MY GOD, I grew up eating their products!! No more English Tea's, Taffy, Frosted Oatmeal or Frosted Circus Animals Cookies.
The Canadian operation also has now filed for protection the same as the US operation:
TORONTO, Nov 10 (Reuters) - InterTAN Canada, Circuit City Stores Inc's (CC.N: Quote, Profile, Research, Stock Buzz) Canadian operation, on Monday was granted creditor protection by the Ontario Superior Court of Justice.
InterTAN, which operates or licenses 772 electronics stores and dealer outlets in the country under the banner The Source by Circuit City, appeared before the court hours after its U.S.-based parent company and 17 affiliates filed for Chapter 11 protection from creditors in Richmond, Virginia.
CC has been on a downward spiral for years. Margins are razor thin on electronics. Couple that with a pricing structure that can't compete with the internet and a lackluster sales force, this was probably inevitable.
I'm surprised that Radio Shack is still in business.
It really doesn't surprise me. The store near us would never match their online prices (until just recently) and would not match the prices at their competitor (Best Buy) and would always nickel and dime you to death on everything. Forget ever trying to haggle them or try and get some customer service. In my area Best Buy has always been the better and I told the manager at CC two years ago that they would go out of business or lose stores if they kept up these practices and she just smiled and laughed. Who's laughing now!!!
Hmm - my exprience has always been the opposite.
Hold on to your hats! I just heard on the news that Best Buy and Office Max are having "Difficulties" and may have to start laying people off! This is usually the fist step before they file chapter 8.
I check various news sources daily and just wait for more bad announcements each day. Circuit City, Best Buy, Penneys, Macy's are all doing poorly. Just wait until after the holiday season and they report the significant loss of sales versus what they projected. In fact, the galleria here in St. Louis is talking about closing after thriving only 2 years ago.
Therefore, should you not only look for bargains but you might be wiser to save your money for food because it is going to continue to go sky high from the food forecast reports I have seen.
I don't want to be doom and gloom but I saw an article yesterday that a deep recession is unpreventable and possibly we are in for a depression. So much for $500 GPS's...
I don't want to be doom and gloom but I saw an article yesterday that a deep recession is unpreventable and possibly we are in for a depression.
If everyone followed this suggested course of action the prediction of a recession or a depression occurring causes it to becomes a self-fulfilling prophecy.
The reason all these Company's are suffering is because the consumer has been scared by the media into believing that exact thing. When the consumer quits spending it starts a domino effect. Businesses have to start laying off people because of lack of sales, those laid off people now no longer can purchase the goods are services that your Company provides and next thing you are laid off and so on and so on.
Another ramification of the consumer not spending is the loss of sales tax revenues and with the loss of jobs a loss of revenue to the government in earnings taxes from both individuals and businesses. That means that services provided by Government and funds for education have to be curtailed and as has already started, Government employees are being laid off also.
Unless the Consumer gains the confidence to start spending again this downward spiral will not stop. If the media does not stop sounding like "Chicken Little" we are in for far more severe problems than we are now facing.
The last round of government checks were not very effective because they were not used as the Government had hoped to spur buying and thus helping to boost the economy but were used instead mostly to reduce people's current debt and that was of no help to stave off the recession.
Like I said it becomes a self-fulfilling prophecy!
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