irreality

Unable to find a buyer or a refinancing deal, Circuit City will be closing all 567 US stores.  Remaining merchandise will be sold by liquidators, and some 35,000 people are now out of a job.

“This is the only possible path for our company,” Circuit City’s acting Chief Executive James A. Marcum said in a statement. “We are extremely disappointed by this outcome.”

It is still unclear what will happen to the 765 retail stores and outlets in Canada, as there are still bids for the Canadian business.

(from Barron’s and Yahoo/AP)

While the loss of these jobs is horrible and couldn’t come at a worse time, in my personal experience Circuit City never came close to performing as well as its competitors and sadly, this is the end result.

The painful truth companies must face is that no longer will customers continue to put up with bad service, high prices and poor selection, and with the economy growing worse daily, that will not be changing any time soon.

Tags: Bankruptcy, Circuit City, economy

This entry was posted on Friday, January 16th, 2009 at 12:40 pm and is filed under Business, Economics, US News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.