Circuit City Stores, Inc. to Liquidate

[Sonnie]

Circuit City Stores, Inc. to Liquidate

RICHMOND, Va., Jan 16, 2009 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 http://investor.circuitcity.com and clicking on "Breaking News" and at the Claims Agent's Web site at www.kccllc.net/circuitcity.

About Circuit City Stores, Inc.

Circuit City Stores, Inc. (OTC: CCTYQ) is a specialty retailer of consumer electronics and related services. At December 31, 2008, the domestic segment operated 567 stores in 153 U.S. media markets. At December 31, 2008, the international segment operated through approximately 765 retail stores and dealer outlets in Canada. Circuit City operates Web sites at www.circuitcity.com, www.thesource.ca and www.firedog.com.

Forward-Looking Statements

Statements made in this release may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are subject to risks and uncertainties. These forward-looking statements include, without limitation, statements regarding the company's expectations concerning the bankruptcy process. Actual results may differ materially from those included in the forward-looking statements due to a number of factors, including, without limitation, developments in the bankruptcy proceedings, the results of the liquidation sales and other matters.

SOURCE: Circuit City Stores, Inc. Press Release

[takumi]

Sonnie wrote:

Circuit City Stores, Inc. to Liquidate

RICHMOND, Va., Jan 16, 2009 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 http://investor.circuitcity.com and clicking on "Breaking News" and at the Claims Agent's Web site at www.kccllc.net/circuitcity.

About Circuit City Stores, Inc.

Circuit City Stores, Inc. (OTC: CCTYQ) is a specialty retailer of consumer electronics and related services. At December 31, 2008, the domestic segment operated 567 stores in 153 U.S. media markets. At December 31, 2008, the international segment operated through approximately 765 retail stores and dealer outlets in Canada. Circuit City operates Web sites at www.circuitcity.com, www.thesource.ca and www.firedog.com.

Forward-Looking Statements

Statements made in this release may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are subject to risks and uncertainties. These forward-looking statements include, without limitation, statements regarding the company's expectations concerning the bankruptcy process. Actual results may differ materially from those included in the forward-looking statements due to a number of factors, including, without limitation, developments in the bankruptcy proceedings, the results of the liquidation sales and other matters.

SOURCE: Circuit City Stores, Inc. Press Release

I went to CC today I have to say the liquidation sale is a joke.

[Sonnie]

Sounds like the Goody's liquidation sale. They had everything 30% off, but they had all their tags at full retail. Generally I could go in that store and buy shirts and pants for less than this 30% off based on their regular discounted pricing.

[fibreKid]

This AM I went into the local Circuit City store here in CA. and the prices were typical except they had 10% off. The liquidators hadn't visited the store so the prices for the inventory for that store had not been adjusted. That's the story the sales folks were giving out. I was miffed for just a second until I remembered that everyone in a red shirt was also loosing their job. That though really set me back and I had a whole new take on the bargain hunting. I didn't buy anything, I kinda felt likea vulture.

[tcarcio]

I never had much use for CC anyway for obvious reasons. I might see what they have for BD movie sales but to tell you the truth I expect that their liquidation prices will be about what I pay now on the net.

[jinjuku]

fibreKid wrote:

This AM I went into the local Circuit City store here in CA. and the prices were typical except they had 10% off. The liquidators hadn't visited the store so the prices for the inventory for that store had not been adjusted. That's the story the sales folks were giving out. I was miffed for just a second until I remembered that everyone in a red shirt was also loosing their job. That though really set me back and I had a whole new take on the bargain hunting. I didn't buy anything, I kinda felt likea vulture.

You shouldn't feel like a vulture. The reason most here don't shop at CC or BB is they don't need the perceived 'value add' that a normal person off the street seems to need. Most people walking in don't know the difference between LCD and LSD. Those same people walking in won't even think of googling for Plasma vs LCD to get their learn on.

The only reason that any of us will go to CC now is that the pricing for equipment is @ the pricing thresh hold that we are accustomed to. We definitely don't need their 'expertise'. So we aren't willing to pay for value add when it adds no value.

[chrisy]

Hi Sonnie,

Jerry Del Colliano of Home Theater Review predicts that Circuit City will be "reborn" - check out the article here:

"Today is the day that damaged big-box retailer Circuit City finally gave up its will to live as the company transitioned from Chapter 11 reorganization to the much more serious Chapter 7 liquidation bankruptcy. The company will likely start the fire sale soon and consumers will camp out overnight at many locations to get first dibs on HDTVs, Blu-ray players, GPS devices and any other electronic goodie that isn't nailed down as the failed retailer tries to pay back its vendors pennies on the dollar for what they are owed.

Over 30,000 people in the United States will lose their job because of the failure of Circuit City. This only adds to the worrisome unemployment problem in the country just days before the inauguration of president Barack Obama who is trying to create over 3,000,000 new jobs for Americans in 2009. Circuit City just moved him one percent in the wrong direction in one day.

Once every electronic component in Circuit stores have been turned into cash, the other assets of the many subsidiaries will be auctioned off. This will likely include the rights to the name "Circuit City", the company's website and client list. While Circuit City is a damaged brand it is not a dead brand. It is possible to see investors coming in after the funeral to buy back the name and build back even a small group of retail stores to possibly cash in on the brand equity without having to save the grossly mismanaged chain.

The beginning of the end was when Circuit City fired their best sales people nearly five years ago. In an unthinkable move, it took the human resources that interact with their clients in ways that generated the most revenue and put them on the street to get short-term stock gains. In the mid-term the company died a miserable and avoidable death. You cannot outsource quality salespeople. You cannot replace trained, well paid and well-worth-the-money sales people with low-priced clerks as Circuit City did and they have learned that lesson the hard way. The very hard way."

[panther3769]

People do not do there research before going to CC on there sale. They have the Onkyo av tx-sr806 listed at $999, on sale for 25% off, which is $750. You can buy on Amazon.com for $627. They only good stuff there is accessorie type stuff, like wii, ps3, xbox stuff and dvd's, as of right now!

[takumi]

panther3769 wrote:

People do not do there research before going to CC on there sale. They have the Onkyo av tx-sr806 listed at $999, on sale for 25% off, which is $750. You can buy on Amazon.com for $627. They only good stuff there is accessorie type stuff, like wii, ps3, xbox stuff and dvd's, as of right now!

when they get to over 60% off it will be a deal. you might be able to get a floor model for $100 at the end. i went to one that had a sea of harmony remotes i plan to buy all of the at $50 a pop. the next price drop is thursday keep your eye open you may be able to make some money.

[panther3769]

takumi wrote:

when they get to over 60% off it will be a deal. you might be able to get a floor model for $100 at the end. i went to one that had a sea of harmony remotes i plan to buy all of the at $50 a pop. the next price drop is thursday keep your eye open you may be able to make some money.

That is what I was thinking 50-60% off, but hopefully they will have good stuff left, probably not, but one can hope!

[takumi]

panther3769 wrote:

That is what I was thinking 50-60% off, but hopefully they will have good stuff left, probably not, but one can hope!

i know that places hit hardest by the economy will plenty left.

[panther3769]

True, but it seems like the closest one to me is not

[the_rookie]

Im glad to see them gone...well sucks the influx of lost jobs, but overall the quality of equipment was poor. As well as prices for them. I was disappointed in what I found there, all over priced junk.

[nova]

Popped into my local CC today,... not trying very hard to liquidate this store. They had an open box Onkyo 806 for the blowout price of $599 , also had Harmony One's for $189 and the 880's for $249

takumi wrote:

when they get to over 60% off it will be a deal. you might be able to get a floor model for $100 at the end. i went to one that had a sea of harmony remotes i plan to buy all of the at $50 a pop. the next price drop is thursday keep your eye open you may be able to make some money.

[panther3769]

There up to 50% off now on dvd's and other accessories. I was thinking about getting a G5 mouse, half off, would help in my gaming, lol.

[LisaMay]

I was hoping to find much better buys on a new TV... was disappointed. Amazon is really the place once you do your homework.

[tcarcio]

Well I got a good deal on the last day of CC's liquidation. I was looking at a PJ mount they had for $129.99 and each week I have been checking the price came down more than the last. I went there today and got the mount for $26.99. I bought 2, this is the mount......http://www.mountsandmore.com/OmniMou...JT-OM0220.html

[Bailman]

good riddance CC!

[panther3769]

CC is all done here, I think there still selling shelfs and fixures, but there is nothing else left, lol.