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
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Reader Reactions
Hey Transplant, they should have given you a brain transplant, ya little short butt. I hear the traffic on broad street would love to play with you DC.
HEEHAW YA Donkey. Ya just a disgruntled x employeee who got caught up in the cut.
Circuit2 you are the one who said Circuit City was an excellent company. If you use such superlatives here are the companies you should compare yourself to: http://money.cnn.com/magazines/fortune/bestcompanies/2008/
I think you wouldn’t find anyone to describe CC as excellent company and I think CC’s track record will support their exclusion from a list like above. No offense I would never work there and I did have opportunities to do so.
I am sorry you will be losing your job because I am sure you cared enough to work hard. The simple fact is you worked for a company that had a poor track record for managing and decision making. If you saw some of the folks they promoted as the future at CC corp you would understand how they were promoted because who they knew not what they knew. All in all you would be hard pressed to find anyone who did not work there, who would put CC in an excellent or elite class.
As for my employers, I have worked for a couple of companies on the Fortune List and can say they do try hard to make a positive environment for the employees, attract top talent and still make money.
So don’t be bitter. I do feel sorry for your and your family. It stinks to give your life somewhere and to have nothing. You will find something better and I am sure you will be happier at your next company.
I am absolutely appalled by the RTD. Not once in the history of CC has the RTD written a positive, supportive article. NOT ONCE. Even through this tremendously stressful time not once has the RTD support CC, never have they encouraged the fine people of this City to support a LOCAL business that has employed thousands, a LOCAL company that has volunteered in our community, that HAS donated $$ to this city. You have shown no local support and really should be ashamed. Yet the RTD never had a problem accepting CC $’s for advertisements or anything else. What Richmond & CC really needed during these past few months was support… and they never got a single word of it. What the RTD does not realize nor will they ever are the trickle down effect this WILL have on our local economy. God forbid they wrote one positive word and supported this LOCAL employer. I have cancelled my daily and Sunday paper delivery and encourage others to do the same.
Oh and did I forget to mention that in the RTD’s hasty attempt to “report accurate news” they were not even accurate. All because they WANT to see a local business fail… what kind of people are these that want to see thousands MORE of our community friends and family out of work.
I am disappointed as a “Richmonder” and ashamed. SHAME ON YOU RTD.
in regards to the comments about the management…i work at circuit city, and just want to say that mr. marcum, besanko, and the rest of their team (in my opinion) are doing an EXCELLENT job. it’s nice to have a management team that we can get behind and believe in. unfortunately it may be a bit too late (certainly hoping it’s NOT), but as another poster pointed out, they are honest, very forthcoming, and i think are doing what they can and have the right ideas to take the company in the right direction. no matter the outcome tomorrow - i’d like to thank them for the job they’re doing. i firmly believe that had this team been in place a bit earlier the company wouldn’t be in the situation it is now.
Unfortunately the last few posts have strayed from the earlier point. Re-read this story. We have a reporter, at our ONLY mainstream city paper and an online source of news for Richmond that clearly failed to check facts. Regardless of what anyone thinks of the story, this is irresponsible journalism - no matter how fast this story is moving, extra caution should always be taken to confirm. CC stated no comment, and it was irresponsible of the journalist to go ahead with a story WITHOUT having confirmation from the communications person at CC, Mr. Cimino. “Un-named sources” is just as someone pointed out earlier, it is tabloid reporting - its reprehensible, and it needs to be called out.
I bought a computer at circuit city (on Gaskins Rd) a couple of years ago. The guys back in the computer area were incredibly helpful and treated me very nicely I thought. However, before I left, I went and looked at some cameras to think about saving up for one. I tried to ask about a couple that I liked and the guy in that department acted like I was asking him to perform brain surgery. He had no idea, a terrible attitude, and made no attempts to find someone who could help. It didn’t make me stop liking circuit city, but I bought the camera from a guy at Best Buy who went above and beyond to get the right answers to my questions!
“I’m old enough to remember…Sight and Sound in several shopping centers like Southside Plaza.“
Wow—There’s one I’d completely forgotten about. Now I recall it. Thank you for posting that. Other than that, I’ve got absolutely nothing useful to add.
CC has failed simply because of bad management and the decisions they made over the years.
I’m old enough to remember the birthplace of CC. Wards TV on Broad Street.
A small spin-off Sight and Sound in several shopping centers like Southside Plaza.
I remember the electronics departments in the old GEM department stores that were run by Wards.
I remember the Loading Dock
I also remember when everything went sour. Circuit City.
Stopped selling appliances
Have no sales staff that has a clue as to what they are trying to sell and don’t care.
I recently bought a new flat screen. I went to Walmart, Best Buy and CC in that order. Walmart sales person sucked. Best Buy salesperson was very nice and knowledgeable, CC salesperson was a female who couldn’t even speak correct English. Given the TV was the same price at all three stores we went back to Best Buy and bought it there.
When any business ignores and treats customers as CC has there is only one result. Exactly what we see today.
Sad it could have been much different.
This is for Mr. Westendguy Why don’t you point out some perfect organizations for all us to apply to. Enron maybe? Maybe even Freddie Mac or Sallie Mae? Wait what about the auto industry…yes because all of these organizations should get more and more money because they were run absolutely perfectly. Damn, I should have gotton a job at one of those places. I hate to tell you something buddy…with circuit going under.it’s just gonna make things a lot worse in the US. Maybe you can post your business card so we can come work for you and we can see what great leadership is like.
I cannot believe the lack of professionalism and ethics the Times Dispatch displayed today in printing the false information on Circuit City without verifying their source. I plan to cancel my subscription and urge other readers to do the same.
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