JustinFlood.com

Circuit City files for Chapter 11 bankruptcy

Well it’s official.  After the announcement of store closings in the range of 150 stores, and corporate job losses in the range of 17% of its total workforce,  Circuit City has taken the next step and filed for bankruptcy.

From the Cnet Business Tech Blog:

Struggling electronics chain Circuit City announced Monday that it has filed for chapter 11 bankruptcy.

Chapter 11 allows a company to hold off creditors while it attempts to restructure its finances. Circuit City said Monday that it has has negotiated a commitment for a $1.1 billion debtor-in-possession revolving credit facility to supplement its working capital.

Circuit City announced earlier this month that it would shutter 155 stores and lay off 17 percent of its workforce. The retailer said Monday that it will eliminate an additional 700 positions in addition to the reductions resulting from the store closings, bringing the total layoff projection to around 20 percent of its employees. According to the company’s FAQ, in February it had approximately 45,900 employees, not including workers taken on during peak selling periods.

“We appreciate the support we have received from our lenders in the midst of such a tight credit market,” acting CEO and vice chairman James A. Marcum said. “With this support, we believe we have the opportunity to leverage our market position and the strength of our brand to restore Circuit City to solid financial footing.”

I only have one thing to say.   Good riddance.

Circuit City has had nothing but terrible customer service in every one of it’s stores for years, at least in my opinion anyway.  It’s possible that the customer service situation in my area was a symptom of bad district management, but any time I took the chance on shopping at a Circuit City I was left disappointed.

The staff there was even less knowledgeable than their Best Buy counterparts regarding the products that were being sold, and pricing on the shelves very rarely corresponded to how much I was charged at the time of checkout.

Even the process of checking out itself was painful.  All but one or two times I walked into the store to buy something was anyone even STAFFING the checkout lines.  Instead I was directed to stand in a 25-odd person line at customer service to check out, which NEVER got me out of the store in less than 30 minutes.

To ask WHY Circuit City is filing for Chapter 11 is almost hilarious to me.  It’s simply because regardless of the nominally better prices in the circular,  shopping there was nothing but painful.  While Best Buy has it’s own customer service nightmares, if I’m being forced into a brick and mortar store, I’d rather shop there any day of the week.

That being said, I’d rather shop at Amazon.  Good riddance.