Circuit City negotiations continue
Times-Dispatch
Circuit City’s store in Short Pump
Circuit City Stores Inc. is continuing to negotiate with potential buyers that would keep the company operating, a spokesman for the company said today.
"Circuit City remains in negotiations over a going concern transaction," spokesman Bill Cimino said.
Earlier today, two sources said the going concern auction of the number two electronic retailer had not found a buyer.
One of the sources said this afternoon that it appears Circuit City has found a buyer.
"Your sources are wrong," Cimino said over the earlier report that no bidders had found for the entire company.
The Henrico County-based company, which declared bankruptcy in November, entered the auction process on Tuesday after saying it had two potential bidders interested in buying the retail chain as a going concern, which would keep it operating.
Last night, a company attorney said negotiations with bidders would continue.
Bloomberg News reported yesterday that sources said two bidders planned to bid for the chain's stores and liquidate its assets.
Circuit City will present the results of the New York auction to U.S. Bankruptcy Court in Richmond at 10 a.m. tomorrow.
Vendors who supply the chain have been rooting that its buyer continues to operate it after it emerges from bankruptcy.
The chain, which had been suffering from nearly two years of losses, was pushed into bankruptcy late last year as vendors began to pressure it for payment and demand new credit terms, according to court records.
The chain listed $2.3 billion in liabilities when it filed, the majority of which was owed to vendors.
Contact Louis Llovio at (804) 649-6348 or
.
Advertisement
Reader Reactions
DIVX was genius and WAY before its TIME. Think about it Circuit City invented video download not APPLE. I worked at circuit and Best buy both for years and the reason people go back and forth is because they complain no one helped them or to many people helped them and hassled them to much. Retail is crazy like that. Schoonover spent there cash reserves and without the cash they couldnt get through this tough economy. Policies at CC and BB both were IDENTICAL almost to the T. Everyone that worked at CC usually had worked at BB at one point in time. The manufacturos did CC in as much as anybody. I can honestly say that I was very happy at CC and I am very sad for our Country and my friends at CC. All who didnt like CC keep running yours mouthes and hurting peoples feelings but this is hardly an Associate at CC’s fault. God Bless all of you CC! the City concept was the best retail store I had ever entered!!!! I mean that!
Maybe if all of you gave Circuit City a break and quit going to lower priced and lower quality “chinese junk shops” like Walmart the stores that have been around forever and certainly treat people one thousand times better than the foreign, non English speaking employees of Walmart would still be striving!
I shopped Walmart, BB and CC for my flatscreen. All three had the identical SONY and all three had the same price. I bought from BB because the salesman was knowledgable, polite and interested in me buying something. Quit trying to allude to anything other than poor management and even worse sales persons.
Louis Llovio’s was right to trust his sources. The RTD reporting was right on the money: There was no buyer for the entire company.
CC spokesman Bill Cimino was doing his job, trying to keep the door open for potential buyers.
It’s interesting that those who blasted the RTD for reporting what they had been told by two different sources were guilty of exactly what they were accusing the newspaper of doing.
The newspaper has been fairly supportive of CC, but it’s been tough when the retailer just put lipstick on the pig. I recall an article where a reporter visited a new concept store CC had a couple of years go. He really tried to be upbeat about it, but there really wasn’t anything new about their concept and it showed.
Good job, RTD. Proud of you. Outstanding work. Sorry it had to be such sad news for our community.
lvmygldns I have always tried to shop CC first but I can tell you the process is usually a frustrating one. You know that. Store blames Corporate Mangement for lack of direction and change, Corporate blames the Stores for failing to execute on Customer Service and now both blame Customers for not buying from there. That is not the way to build a great organization, you know that. Regardless of how I feel about CC I have shopped and spent money in that store over the years. A lot more than Best Buy.
I do hate that good people will be losing their jobs - some who have been there a while and devoted their careers. These people have families and concerns like mortgages and healthcare. Still the fact remains CC is not an example of Excellence and that is where my comments came orginated. You know I will always be there to help my friends and that includes you.
transplant - regarding your wsj article…i don’t think anyone’s saying that everyone should love cc and not report anything bad and/or negative about them. news is news. it’s just with its entire body of work, the RTD time and time again seems to thrive on cc’s demise or anything negative that happens. of course everything should be reported…it’s news, good or bad. and the RTD doesn’t have to report its CC news with a supportive tone, or overly optimistic. just don’t be so eager to bring the company down…especially when at the expense of journalistic integrity. the wsj, bloomberg, or many other news articles report FACTS.
1-The RTD wants to be like the big boys, NY Times Washington Post, & make stuff up to sell papers.
2-It is sad tha CC is on the ropes & current employees are suffering. However, I am guessing that the comments from CC employees are from the corporate office. I worked in the W Broad store for 5 years selling appliances. I was lied to by management, both corporate & store. Certain employees were pets, just like in elementary school. The commission program was changed to pay for DIVX. This was a joke.
3-In the past, great sales #‘s hid a lot of the fiscal irresponsibility. Too many times, CC started something & pulled out, wasting millions of $‘s, alarm co. HVAC, etc;.
Sorry for the current CC emplyees heartache, as I still have friends at the company.
It appalls me to no end to hear the various comments about Circuit City and the hateful remarks from people. Jim Markum is doing a remarkable job and treats his employees with utmost respect. In this tough economy how would all of you feel if your job was at stake and you lost all of your hard work and savings? In this day and age it is not any picnic to have to worry about the security of your job and where the food on your table is going to come from. It is not the fault of Jim Markum and the rest of the Circuit City Management team, it is the poor management of the old CEO “Screwover” that messed the company up! Jim Markum and the Board of Director’s are trying very hard to save the company. Maybe if all of you gave Circuit City a break and quit going to lower priced and lower quality “chinese junk shops” like Walmart the stores that have been around forever and certainly treat people one thousand times better than the foreign, non English speaking employees of Walmart would still be striving! Wake up America you are selling us down the road to foreign take over, what happened to “MADE IN THE USA”!
FBO ihatebestbuy and other CC booster’s :
http://online.wsj.com/article/SB123206542396988067.html?mod=googlenews_wsj
I suppose they are just CC haters like RTD. Fa`ts stink don;t they??
I really cant beleive all the negative comments! In this day and age all we have left in our country is the “service” industry. All of our manufactoring jobs and call centers and everything else has been sent over sea’s. Where is the loyalty. For all the people out there that complain about non-english speaking people. Look at your place of employment. Who answers your phones? Give em a break. At least there was no embesseling going on. For all of you who say you dont care or good, remember one thing. Karma’s a !@#$%!
WestEndGuy, I just want to remind you that you did get a promotion in CC not long ago.
Congratulations on your new job.
Let us know if you still happy 3 years from now (just in cast it lasts that long)
BTW, dont worry about us, we will survive no matter what happens.
Post a Comment(Requires free registration)
- Please avoid offensive, vulgar, or hateful language.
- Respect others.
- Use the "Flag Comment" link when necessary.
- See the Terms and Conditions for details.
Advertisement