Friday, January 16, 2009

Been There Before! Circuit City Closes it's Doors

Personally I have been with a large company that closed their doors. It's not fun. For the people that are out of work, my personal advice get in touch with every friend, business associate and create your scouting network for a new job.

For the people that have to help liquidate and collect assets, been there also. After the shock of the closing of the stores, things in the office will get real busy and real fast. There will have more meetings with lawyers, liquidators, attorneys and consultants than you can count. From personal experience get someone that knows these products to help you liquidate the inventory. These lawyers, attorneys and consultants don't know diddly squat about electronics and will just charge outrageous fees for liquidation services.

Circuit City Newsroom Press Release

RICHMOND, Va., Jan 16, 2009 /PRNewswire-FirstCall via COMTEX News Network/ -- Circuit City Stores, Inc. announced today that it will seek Bankruptcy Court approval to begin the process to liquidate the assets of the company.

"We are extremely disappointed by this outcome. The company had been in continuous negotiations regarding a going concern transaction. Regrettably for the more than 30,000 employees of Circuit City and our loyal customers, we were unable to reach an agreement with our creditors and lenders to structure a going-concern transaction in the limited timeframe available, and so this is the only possible path for our company," said James A. Marcum, vice chairman and acting president and chief executive officer for Circuit City Stores, Inc.

Circuit City will provide more details in the near term about the plans for the liquidation of the stores and other assets, the status of the company's Web site and firedogSM services operations, the status of its Canadian operations and plans for the company's bankruptcy proceedings.

The company does not anticipate any value will remain from the bankruptcy estate for the holders of the company's common equity, although this will be determined in the continuing bankruptcy proceedings.
The company filed for Chapter 11 bankruptcy protection in November 2008. The case number for Circuit City's Chapter 11 filing is 08-35653. Additional information can be found by visiting the company's investor information home page at and clicking on "Breaking News" and at the Claims Agent's Web site at

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