Circuit City loses credit agency approval (no inventory after Christmas?)

[underpants]

Source: WSLS /Media General


Media General News Service
Published: October 8, 2008

Bernard Sands, a credit reporting company that advises manufacturers whether to ship goods to retailers, has pulled it recommendation from Circuit City Stores Inc. after the company reported last week $239 million in losses for the second quarter.

The recommendation was pulled because of concerns that the retailer might not be able to pay vendors.

Losing the recommendation could affect the company’s ability to get products that it sells.


Read more: http://www.wsls.com/sls/business/investment/article/circuit_city_loses_credit_agency_approval/18948/

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Circuit City Loses Recommendation

Circuit City Stores lost a recommendation from a firm that advises manufacturers on whether to ship goods to retailers a week after the Richmond-based electronics chain posted a quarterly loss more than triple its year-earlier loss. The withdrawal by Bernard Sands signaled concerns that Circuit City may have trouble paying its vendors.
http://www.washingtonpost.com/wp-dyn/content/article/2008/10/07/AR2008100703034.html

[Orrex]

1. This is all because LynneSin didn't show her receipt.

Way to wreck a company, LynneSin!

:spank:

[AwakeAtLast]

16. HAHAHAHA!!!

You are in so much trouble! :D


:rofl:

[stray cat]

2. It sounds like no inventory before Christmas either and for some no more job

That was a concern with the lack of liquidity - stores couldn't get inventory. Now lets see if manufacturers can't get credit to buy things they use for manufacturing.

[underpants]

8. They are probably bought up or at least on order for Xmas

from what I am told by those in the know ;-)

This season is make or break for THE CITY

[sarcasmo]

3. I wouldn't buy any high end items from Circuit City, you might not get to return it

after the first of the year.

[madrchsod]

4. they fired those who worked on commission

and hired minimum wage employees. their stores have never been upgraded....i wonder why no one shops there anymore

[panzerfaust]

43. Untrue, I think.

They only fired those who worked on commission AND who were in the upper 1/3 in earnings (in other words, the hardest working, most knowledgeable staffers), and replaced them with know-little sales clerks.

[Pale Blue Dot]

45. I think you're thinking of CompUSA.

They went under last year.

[HopeHoops]

5. No big loss - you can never find anyone in there who knows a cell phone from a camcorder.

[tylerdee]

6. Wonder what Best Buy thinks?

[HopeHoops]

7. "Ka-CHING!"

[Pab Sungenis]

29. Which is sad

because Best Buy really sucks.

However, I will say that 95% of what I could get at Circuit City I prefer to get from the locally-owned Appliance store down the street instead, so I won't miss them.

The other 5% I order online from Crutchfield.

[HopeHoops]

38. In Best Buy's defence, if it is in the Sunday ad, they have it in stock

This is NOT true of Circuit City, Office Max, and Staples - especially with respect to computers and accessories!

[fujiyama]

39. THey will reap the benefits of this

but I don't expect much ka-chinging from any retailer this holiday season...

[underpants]

9. Something along the lines of --We'll open brand new stores in brand new shopping centers

instead of owning old stores in the old part of town.

Oh wait that is what they thought 6 years ago.

[Demonaut]

10. I only shop at Ultimate Electronics

at least their staff are knowledgeable

[Phred42]

11. AFTER WHAT THESE BASTARDS DID TO THEIR EMPLOYEES LAST YEAR - PHUCK 'em

It's just a shame that the rank-and-file wil go down because of the Fascists in the front office

Oughta be some great sales....

[Esra Star]

12. This parrot is dead. It has passed on. It has shuffled off the

mortal coil....etc....etc

[kayakjohnny]

14. It "Short Circuited" , in other words.

[Esra Star]

28. Exactly, If a company is flushing one billion a year

down the toilet, it is not viable.
Someone has to take out the back and shoot it.

Welcome to DU btw.

[shaniqua6392]

13. I can't wait until they go out of business.

After what they did to their sales people. They fired them all and hired low wage workers. I do feel bad for the workers that are there now, but they should be able to find another low paying job with no benefits. That is all we have left.

[tbyg52]

15. Really. I feel for the workers. I do *not* feel for the corporations.

Something needs to be done about that cancer on society.

[stillcool]

17. I thought they already claimed bankruptcy?

[Dr.Phool]

18. I'll have to start shopping at pawn shops now.

I refuse to even walk in to a Best Buy again, after they charged me $30 to return a $200 GPS that gave wrong directions.

Fuck them and their re-stocking fees.

[sarcasmo]

40. Wow, that is like a 12 percent return fee. That's good to know, Thanks.

[maseman]

19. Circuit Shitty is awful

[Jacobin]

20. I believe the chapter they will be looking for is number eleven

[WriteDown]

21. I am screwed....

I've had so many problems with Best Buy warranties that I refuse to shop there anymore. Circuit City is now gone. I guess it will be 100% Amazon.com from now on.

[progressoid]

22. Big deal - let it crash and burn

What's another 43,000 people unemployed.

[AAARRRGGGHHH]

24. I will lose my job if CC goes under.

I know it's a shitty place and I've tried to find other work but the economy sucks and nobody is hiring. There are an awful lot of people dancing on CC's grave in this thread. The fact of the matter is that a lot of people will lose their jobs, and some of those will have their lives destroyed as a result.

The people in this thread can celebrate all they want, but in my opinion they are spitting in the faces of 43,000 people in doing so.

[progressoid]

26. I fear this is just the beginning of more bad news.

People forget that this isn't just some corporate fat cats being hurt. The will affect their vendors, employees and their families, communities, etc.


Not good.

[AAARRRGGGHHH]

27. Thank you for saying so

I appreciate that you recognize that this is a very bad thing for a lot of good people. I know it's a bad company that has done some awful things, but it doesn't change the fact that many of the people who work there are solid people who are just trying to make ends meet and feed their families. Cheers.

[melody]

31. I'm very sorry you're going through this :(

Best of luck to you and your family.

[sarcasmo]

41. You know it's going to happen, take your skills to Target or Costco much stronger companies.

[Blue_Tires]

23. sad...when i was coming up, two of my favorite places

to check out the latest in electronics were the local circuit city and radio shack...

[joeybee12]

25. I hate Best Buy...

...sounds like I won't have any choice pretty soon.

[trudyco]

33. Me to. Still waiting on Best Buy to reimburse for scratching our floor

We bought a dishwasher and they scratched the floor when they installed it. For almost a year we've been trying to get them to pay for the repairs!

Best Buy customer service sucks.

The Great Indoors isn't so great, either.

[mbperrin]

30. Their store here closed 3 years ago. I would imagine over

experiences like mine. I wanted to buy an additional CD drive for my PC. 2 different sales people told me they weren't made any more. I was standing in front of the drives, I just had questions on speed and price (since none were marked.) I finally just left. This is years before any kind of credit crunch. This is simply an ill-run company. I went in there just once. The place was open in the newest shopping area here for just about a year, then they were gone.

[Zenlitened]

32. I wonder if Circuit City will still be offering gift cards this holiday season?

:shrug:

And I wonder also... who in their right mind would buy one?

[KamaAina]

36. The same people who opened accounts at WaMu or took out policies with AIG

both of those erstwhile financial titans put on a huge advertising blitz right before their respective collapses, hoping to sucker in a few million last dollars. Wonder if CC will follow that path?

[customerserviceguy]

34. Retail electronics companies

are all going to have severe problems. But it was particularly stupid of Circus City to wipe out the commissioned salespeople in favor of minimum wage clerks. People were using retail outlets to examine things, then were buying online. It took a highly motivated salesperson to persuade them to buy here, buy now. Minimum wage is just your boss's way of saying, "If I could legally pay you less, I would." No wonder they didn't give a crap about trying to keep the business there.

CC just became the Internet's unpaid showroom. And that was in good times.

[high density]

35. Good riddance

Most of the times I visit Circuit City I leave empty handed because they didn't have what I was looking for. Their Radio Shack-esque layout fails miserably for a store their size.

[Crowman1979]

37. I'll make my own entertainment center! screw CC

Makes me glad I'm going to junior college for electrical technology. And have access to maintenance manuals for any type of electronics. I usually buy from Tiger Direct anyways.

[Imagevision]

42. Just a matter of time before Best Buy bites the bullet, without credit their screwed as well...!

[SoCalDem]

44. Some bad businesses will fail..they probably should have gone long ago

any company that loses THAT much money, is doing something very wrong..

I feel badly for their employees, but sheeeeezzlouise..that's a shit-load of money to have "lost"... and why did they keep ON losing money after they lost 5 million, or 10 million, or 75 million?? Just how big of a font was necessary for them to read that writing on the wall?

There are A LOT of companies that will be failing.. We have OVER-done it...in spades...and the unwinding begins:(

[Pale Blue Dot]

46. "We have OVER-done it"

I can't agree with you more. That's the point it seems that most people are still missing. What happened with Circuit City happened with households, companies and governments all over the country. And yet the only solution anyone can think of is to try to "buy" us out of the crisis.

Nobody wants to admit yet that the bill has come due and we can't continue to spend money we don't have.