Good morning, Netizens…
It was so shocking to some that Circuit City, a major purveyor of high-tech gadgets in Spokane has fallen from bankruptcy to liquidation. Circuit City became the largest retailer to fall victim to the expanding financial crisis Friday, announcing it will shut down its remaining 567 U.S. stores at the cost of 34,000 more jobs after failing to sell the business. What is the impact on Spokane?
The stores will close, and all merchandise that was originally slated to be sold will be handed off to a variety of liquidation companies beginning perhaps as early as today.. According to the AP news wire, Circuit City said in court papers it has appointed Great American Group LLC, Hudson Capital Partners LLC, SB Capital Group LLC and Tiger Capital Group LLC as liquidators. What this means is that products which you could have purchased last month for a given price will be available next month at substantially-discounted prices.
This is, according to most analysts, the fallout from one of the worst Christmas shopping seasons in recent American history. This is yet another in a long string of high-profile bankruptcies including Mervyns, Linens and Things and Gottschalks Inc., not to mention various other national chains that have shuttered their doors.
There is a lot of information about the Circuit City liquidation at http://www.circuitcity.com/closed.html including advance notice of sales which are due to take place as early as today.
It is a sad, sad time for our national economy when one of the largest chains have closed. It does not bode well for the others.