Circuit City

Circuit City was the United State's second-largest consumer electronics chain and they have filed for Chapter 11 bankruptcy. They have lost more than $5 billion in stock over the past two years. Its business was stolen away by discounters such as Wal-Mart and Best Buy.

Customers were disappointed at the sale prices advertised by the comapny. Comments have been posted on the virtual communities (websites for bargain hunters) that the discounts were not as significant. "Discounts are small."

Liquidators say that 10-30% off is the largest electronics liquidation ever. However, customers were not buying it.

The Alliance Entertainment Corporation is the distributor to music and electronics. Retail Chain Circuit City is 1.4 billion in debt. On August 1, 2014 a $821 million debt payment will be due. To make the payment the company will begin consolidating its magazine, CD, and DVD distribution businesses.

Circuit City would like to keep its loyal customers as it reorganizes during this tough time. Circuit City is going to stick to its loyalty programs and will continue to accept returns and exchanges.

Sources:

Jakobson, Leo. "Circuit City Bamkruptcy Roils Gift Cards." Incentive. January 2009. EBSCOhost. UNCG Jackson Library. 2 March 2009. http://libproxy.uncg.edu

Tozzi, John. "Circuit City: Vying for Liquidation Bargains." Business Week Online. 26 January 2009. EBSCOhost. UNCG Jackson Library. 1 March 2009. http://libproxy.uncg.edu