After failing to sell its remaining 567 stores, Circuit City announced Friday that it was finally closing its doors after 60 years in the business. Here is another proof that the economy is still on its way down as this most recent demise will mean 34,000 more jobless as the year begins.
Negotiations to sell its stores fell Thursday as they failed to secure financing and support from its vendors. Last year, the problems in the credit market also made it impossible for Circuit City to secure refinancing from its creditors and led to its filing of bankruptcy.
Circuit City has about $1.8 billion in inventories to liquidate until March this year. Many bargain hunters are now on the lookout to take advantage of the opportunity. Buyers beware though. Remember that close-out sales mean you will only be able to get the manufacturer’s warranty. These are “no return, no exchange” deals and products are sold “as is.” When making a purchase, make sure you check out the manufacturing date and consider that it may be a display item. For TVs, display items mean that it has already been utilized, and at maximum brightness to lure buyers.
Well, Circuit City’s bad luck just meant that Best Buy has just cemented its niche in the retail electronics business.