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Circuit City going belly up

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MililaniBuckeye;1316351; said:
I've read numberous posts in this thread saying "GCs" won't be honored. I assume that means "gift cards". If so, isn't CC obligated to honor them since they've already been given money for the gift cards? You would think it would be illegal for them to sell gift cards and then turn around and not honor them.
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Gift cards are considered debt. When they declare bankruptcy (which hasn't happened yet), you'll be out of luck.

This already happened at Bed Bath & Beyond. Slickdeals among other sites has plenty of explanations and griping about that scenario.
 
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jwinslow;1318185; said:
Gift cards are considered debt. When they declare bankruptcy (which hasn't happened yet), you'll be out of luck.

This already happened at Bed Bath & Beyond. Slickdeals among other sites has plenty of explanations and griping about that scenario.
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Forunately I haven't bought or recieved a gift card. CC hasn't declared bankruptcy yet, so how can they refuse to honor gift cards? And I can't see how gift cards can be considered "debt" since CC is the one who received "payment" (purchase price of the gift card) up front without having to supply any sort of merchandise...it's essentially free money until the gift cards are redeemed for goods.
 
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MililaniBuckeye;1318190; said:
Forunately I haven't bought or recieved a gift card. CC hasn't declared bankruptcy yet, so how can they refuse to honor gift cards? And I can't see how gift cards can be considered "debt" since CC is the one who received "payment" (purchase price of the gift card) up front without having to supply any sort of merchandise...it's essentially free money until the gift cards are redeemed for goods.
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I'm not sure, were folks saying the cards were already being declined? Or just warning of that eventuality?

Apparently liquidators are taking control of the closed CC stores. If they are indeed rejecting GCs in those stores, perhaps they do not honor them since they did not receive the cash originally.
 
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Dryden;1318178; said:
It's not as fun if it doesn't fit my agenda. :p
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Sorry, I didn't mean to ruin your agenda.

If it makes you feel better, yours is not the first agenda to be interrupted.
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:biggrin:
 
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Going ... going ... Gone!

Circuit City Files for Bankruptcy - WSJ.com

Circuit City Files for Bankruptcy

Troubled electronics retailer Circuit City Stores Inc. filed for Chapter 11 bankruptcy Monday in an effort to stay ahead of lenders owed $898 million.

With going-out-of-business sales already in full swing at about 20% of its outlets, the nation's second-largest consumer electronics chain by revenue says it has an immediate need for financing.

The company cited erosion of vendor confidence and consumer retreat in the face of the global economic crisis for the bankruptcy filing.

Cont'd
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MililaniBuckeye;1318190; said:
Forunately I haven't bought or recieved a gift card. CC hasn't declared bankruptcy yet, so how can they refuse to honor gift cards? And I can't see how gift cards can be considered "debt" since CC is the one who received "payment" (purchase price of the gift card) up front without having to supply any sort of merchandise...it's essentially free money until the gift cards are redeemed for goods.
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Gift cards are recorded as a debt at the time of purchase, not as revenue. Until the card is redeemed, the balance sheet reflects the value of the card as a liability. The debt is cleared and revenue recorded when the gift card is redeemed. :nerd:
 
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Circuit City to shut down

Court filing shows bankrupt electronics retailer seeks approval to sell merchandise in its remaining 567 stores.

NEW YORK (CNNMoney.com) -- Bankrupt electronics retailer Circuit City Inc. said Friday it has asked for court approval to close its remaining 567 stores and sell all its merchandise.
The company said it has 30,000 employees.
In a filing with the U.S. Bankruptcy Court for the Eastern District of Virginia, Circuit City - the No. 2 electronics retailer after Best Buy - said it had reached an agreement with four companies to start the liquidation process.
The company said it the sale would begin Saturday and run until March 31, pending court approval

Entire article: Circuit City seeking to liquidate - Jan. 16, 2009

Circuit City says will liquidate assets

ATLANTA (Reuters) - Bankrupt retailer Circuit City Stores said on Friday it will liquidate its assets after it failed to reach a deal with creditors and lenders regarding a potential sale of the company.
Circuit City, the second-largest U.S. specialty electronics retailer, was due to present the results of an auction for its assets at a hearing in U.S. Bankruptcy Court in Richmond, Virginia, on Friday.
It had conducted negotiations with potential bidders to sell the company, but had advised that liquidation was possible if no deal was reached.
"Regrettably for the more than 30,000 employees of Circuit City and our loyal customers, we were unable to reach an agreement with our creditors and lenders to structure a going-concern transaction ... and so this is the only possible path for our company," Vice Chairman James Marcum said in a statement.
Shares of the chain fell 68 percent to 5 cents.

Entire article: http://www.reuters.com/article/newsOne/idUSTRE50F1VW20090116
 
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OHSportsFan9;1383299; said:
So is this a good time start checking out some of their stores and grabbing some of their inventory (specifically a nice TV) pretty cheap?

Wait a couple more weeks and see what deals they put out?
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As always (from me):

Slickdeals - CC Getting Liquidated

The stores closed at the end of the year had very mediocre deals when they began selling off...
Probably not, the last few liquidations I've been to the prices were jacked up so the liquidator can advertise 40% off and still be more expensive than the competition. There will be a lot of suckers at CC over the next few weeks, just like there was at LNT last month.
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BuckeyeNation27;1383300; said:
Who wants to tell me what to buy at Circuit City tonight that's worth $100?
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When they started the initial round of closings for the CC's in C-Bus back in November a buddy of mine scored a really nice camcorder for under $200 and also picked up a load of cheap games. The "budget" games were marked down a further 60% from their normal $19.99 prices (I guess they had a ton of $8 titles), but he mentioned even the majority of new games were still 40% off. He bought both LBP and GTA IV for $35 each, and at that point LittleBigPlanet had only been out about three weeks.
 
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Dryden;1383312; said:
When they started the initial round of closings for the CC's in C-Bus back in November a buddy of mine scored a really nice camcorder for under $200 and also picked up a load of cheap games. The "budget" games were marked down a further 60% from their normal $19.99 prices (I guess they had a ton of $8 titles), but he mentioned even the majority of new games were still 40% off. He bought both LBP and GTA IV for $35 each, and at that point LittleBigPlanet had only been out about three weeks.
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Interesting. When was that? Right away? 2nd/3rd/etc week of the liquidations?

From what I've seen, if you're in the area it might be worth stopping by, but I wouldn't make a long trip for it.
 
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