Circuit City Goes Bankrupt

circuitcity_vs_bestbuyCircuit City officially announced yesterday they would be closing down shop and going out of business. That’s over 567 vacant big boxes scattered across the land. Yes, the economy had a negative impact on the company. But the real problem emerged in the early 90s with increasing competition from Best Buy–their stores were bigger and in better locations.

The good news is that billions of dollars of electronic inventory will be steeply discounted as part of the liquidation process. Discounts will start at 30% and you can bet they will increase by mid-year. So if you’re in the market for that 1080p HD TV you’ve always wanted you’ll likely get a better price from Circuit City than Best Buy. The bad news is that the company’s 34,000 employees will be out of work. And I’m guessing many of them will not be buying new TVs any time soon.

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