Circuit City to Close 155 Stores, Cut U.S. Workforce

[marmar]

Circuit City to Close 155 Stores, Cut U.S. Workforce (Update1)

By Mark Clothier

Nov. 3 (Bloomberg) -- Circuit City Stores Inc., the unprofitable electronics retailer, will close 155 U.S. stores and renegotiate leases on some of its remaining 566 U.S. locations to conserve cash.

The closures will reduce the company's U.S. workforce by 17 percent, Circuit City said today in a statement. The global financial crisis is restricting credit, making it more difficult for manufacturers to supply Richmond, Virginia-based Circuit City with the merchandise it needs to get through the holiday season, the company said.

Circuit City has posted six straight quarters of falling sales. The retailer hired FTI Consulting Inc. and replaced its chief executive officer after losing customers to Best Buy Co. and Wal-Mart Stores Inc. Circuit City is closing stores in 55 metro areas and will exit 12 of those markets altogether.

``Since late September, unprecedented events have occurred in the financial and consumer markets causing macroeconomic trends to worsen sharply,'' CEO James Marcum said in the statement. ``The weakened environment has resulted in a slowdown of consumer spending, further impacting our business as well as the business of our vendors.''


http://www.bloomberg.com/apps/news?pid=20601087&sid=aYVXW9z9PHAo&refer=home

[YOY]

1. Not much pity to the CEOs but I do feel for the severly underpaid workers.

The customer service is horrible there. The lines are atrocious as well. I've been in there on non-busy days and waited twenty minutes in line with only 2 people ahead of me. Many employees were not doing much except standing around and were not very knowledgable.

I heard they cut them and then hired them back at cheaper rates.

Asshole company.

[rcrush]

3. They laid off all the commissioned sales people

And hired stupid teenagers at minimum wage. Plus all they sell is second rate crap.

[YOY]

6. I got that distinct feeling.

A fact that shines quite strongly and is easy to see once you enter the store.

[KharmaTrain]

2. And They Just Opened A New Store Here...

They rushed to get this thing up and running for the holiday season. My bets they'll be on that list...and right be it so.

I've stopped going to Circus Shitty years ago due to their poor selection and service. This year is going to be brutal for a lot of retailers who overexpanded, got themseles into financial messes and now will be lucky to survive into next year.

Cheers...

[arcadian]

4. Former CEO Richard L. Sharp is a Bush boot-licking toady

He started CarMax as well.

[blueknight]

5. a dear friend of mine worked there many years,

was their best salseman,won numerous awards in sales. and worked on commision. out if the blue, the management came up to him one day while he was working, and told him he either had to go to hourly rate or resign. they wanted to pay him like 8.50 a hour!. he then quit,and squeezed two weeks severance out of them. this shows their loyalty to a guy who worked there about 15 years.