Circuit City is going out of business -- FAQ

Circuit City would like to thank all of the customers who have shopped with us over the past 60 years. Unfortunately, we announced on January 16, 2009, that we are going out of business.

Please check back later for updates about the status of our website. In the meantime, we hope the information below will help answer most of your questions.

What's going on at Circuit City?

Due to challenges to our business and the continued bleak economic environment, Circuit City is going out of business and the company's assets will be liquidated to pay off creditors.

The process was extremely difficult and we were left with no other choice but to liquidate. Circuit City had a proud heritage of serving the public for 60 years and we deeply regret the impact this decision will have on our associates, our customers and the communities where we have operated stores and other facilities.

We had hoped to be able to emerge from Chapter 11 bankruptcy protection as a stronger, more competitive company and we made significant progress during the reorganization to improve our business. Unfortunately, the economic climate is so poor that we have no choice other than liquidation.
Liquidators will start arriving in our 567 stores across the U.S. over the weekend, and closing sales will start as early as Saturday, January 17. Closing sales will run as long as it takes to sell existing inventory, but are expected to wrap up by the end of March. When the liquidation sales are completed, the stores will be closed.

At the company's corporate offices in Richmond, Virginia, a small staff will remain on duty during the completion of the liquidation process; most associates will be relieved of their duties immediately.

Consistent with federal labor laws, Circuit City associates are receiving 60-days notice of the termination of their employment. Those who stay on to help with the liquidation, of course, will receive pay and benefits. Those who are dismissed earlier will be receiving pay and benefits for the 60-day period beginning January 16, 2009.

Associates at our company headquarters will be asked to come back on Monday, January 19, to find out more about their status and to retrieve their personal belongings.

Are you also shutting down your operations in Canada?

No, our Canadian operations will continue. They are not affected by the liquidation of Circuit City's U.S. operations. The Canadian operations employ approximately 3,000 associates.

How many people are losing their jobs as a result of this action?

Circuit City employs approximately 34,000 associates in the U.S.

Can you provide some background on Circuit City?

Founded in 1949 as the Wards Company, Circuit City is headquartered in Richmond, Virginia. At the time of the liquidation announcement (January 16, 2009), the company operated 567 stores in 153 media markets in the U.S. and approximately 765 retail stores and dealer outlets in Canada.

For a timeline history of the company, go to Investor Information & Newsroom, and click on Company Information.

Will Circuit City stores continue to accept Circuit City gift cards?

Yes, customers holding Circuit City gift cards may redeem them at full value at our stores during the liquidation sales. Once the stores are closed and the company is out of business, the gift cards will have no value.

Are Circuit City's extended warranties affected by the liquidation?

No. Circuit City Advantage Protection Plans® (extended warranties) have been backed by third-party independent companies for more than 15 years and as a result, are not impacted by Circuit City's closing.

Currently, all Circuit City Advantage Protection Plans are fully backed by the Assurant Solutions companies. Assurant Solutions operates as Federal Warranty Service Corporation, Sureway, Inc., and United Service Protection, Inc. Assurant Solutions is part of Assurant, Inc. (NYSE: AIZ), and its extended service contacts are backed by an Assurant insurance subsidiary rated A "Excellent" by A.M. Best Co.

When will the liquidation sales begin?

Liquidation sales begin as early as Saturday, January 17, 2009, and will last as long as it takes to sell through the merchandise at each of the stores. We expect the sales to wrap up by the end of March 2009.

How much will merchandise be marked down, and can customers negotiate prices for the merchandise?

There will be clearance pricing, but specific discounts are not being announced. All sale prices are at the discretion of the liquidator. Prices are non-negotiable and all adjustments must be approved by the liquidator's on-site managers.

What payment types will be accepted at the liquidation stores?

Stores in liquidation will accept cash, Circuit City gift cards and most credit cards. Personal checks will not be accepted. All sales are final.

Will Circuit City's price matching policy or the One Price PromiseSM apply during the liquidation sale?

Because the liquidation company is in charge of the sales at the closing stores, their policies are in force. So, One Price Promise does not apply during liquidation events, nor does the company's Unbeatable Price Guarantee. All sales are final.

What about returns and refunds?

Customers can return products they purchased prior to January 16 for a 14-day period for exchange or refunds. All other terms of return policy are in force.

When closing sales begin on or around January 17, 2009, all sales will be final.

Will delivery service be available for products purchased from liquidation stores?

No. Unfortunately, we will not be able to provide delivery services for products purchased from liquidation stores.

Will Circuit City offer home theater installations during the closing sale?

Yes, we will continue to offer home theater installations during our closing sales.

Will Circuit City offer PC services and repairs at liquidation stores during the closing sale?

Services already underway at the liquidation stores will be completed promptly, but no additional jobs will be accepted at these stores.

Will car electronics installations be available at liquidation stores during the closing sale?

No new car installations will be offered.

Will Circuit City's extended warranties still be available on products purchased from liquidation stores?

Yes, we're making no changes to our Circuit City Advantage Protection Plans®. Coverage is national and purchases will still be protected just as they always were.

Circuit City Advantage Protection Plans® have been backed by third-party independent companies for more than 15 years and as a result, are not impacted by Circuit City's bankruptcy or liquidation.

Currently, all Circuit City Advantage Protection Plans are fully backed by the Assurant Solutions companies. Assurant Solutions operates as Federal Warranty Service Corporation, Sureway, Inc., and United Service Protection, Inc. Assurant Solutions is part of Assurant, Inc. (NYSE: AIZ), and its extended service contacts are backed by an Assurant insurance subsidiary rated A "Excellent" by A.M. Best Co.

What if a customer purchased products at one of the closing stores and the product needs service?

Source:
Circuit City

They are moving merchandice. At the Marlow Heights store in MD this has already happened.

What do you mean "moving merchandise"?

I'm looking for a good priced Desktop Computer...hopefully i'll be able to find one for a good price.

Originally Posted by mad1111 What do you mean "moving merchandise"? I'm looking for a good priced Desktop Computer...hopefully i'll be able to find one for a good price.

By moving merchandise, it simply means that they are taking good stock, (newer models of anything) and moving them to stores that will be staying open. Only leaving old or discontinued merchandise in those stores.

This is pretty easy for a company like circuit city because they usually have their own trucks that deliver merchandise daily.

They are basically just trying to get as much money for their merchandise as possible and marking down items that sell for full price at a more popular store does not make them money.

Be care about "liquidations". Retail chains typically outsource their liquidations to third parties who bid for and buy up inventory at one or more B/M (brick & mortar) locations. They then staff the location with their own people, mark-up the prices while also showing a mark-downed discount to leave you with the impression that the item is below retail. They'll even stock the location with merchandise they couldn't sell at the previous liquidation they ran. So, unless you wait to until close to the last day of the liquidation before they close the doors to buy something that's in low demand and hard to move (e.g. a sofa), it's probably better to visit eBay for the best deals on what you really want.

[chicago]

Originally Posted by Unregistered Be care about "liquidations". Retail chains typically outsource their liquidations to third parties who bid for and buy up inventory at one or more B/M (brick & mortar) locations. They then staff the location with their own people, mark-up the prices while also showing a mark-downed discount to leave you with the impression that the item is below retail. They'll even stock the location with merchandise they couldn't sell at the previous liquidation they ran. So, unless you wait to until close to the last day of the liquidation before they close the doors to buy something that's in low demand and hard to move (e.g. a sofa), it's probably better to visit eBay for the best deals on what you really want.

Please be careful on using the term "liquidation".

Chapter 11 is not Chapter 7 so Circuit City isn't going out of business per se.

Many retailers have gone in to Chapter 11 and emerged stronger and are still in business today.

On Friday, Circuit City said it was liquidating all of its stores. Then, on Saturday, there was a big liquidation sale at my local Circuit City--up to 30 percent off. The checkout line was almost as long as the lines you encounter on a typical Saturday at Fry's--the mostly California- and Texas-based sprawling electronics warehouse. The line actually snaked to the back of the store.

At the store I worked at, we did 10% off the sale price for yesterday only. Some people got some crazy deals, and many of the TVs were sold below cost. Maybe that's why, for the most part, people were nice to me and my fellow associates.

And the point of liquidation is to turn remaining merchandise into cash, i.e. "liquid" assets. So on the first day, why mark down something 50% if someone is going to pay for it when it's 10% off? From a business standpoint, it makes perfect sense.

But I don't know what's worse: the vultures at the liquidation companies that mark prices up before marking them down and will fire a CC employee for taking off 11% instead of 10% if their math was wrong, or the vulturesque customers that complain that they're getting ripped off on the sale that they were never forced to make.

I went out there on saturday and they were still being Circuity City. Up to 30%? And nothing you really wanted. I'll go back when their days are more desperate. Today was a joke and a waste of time.

Your totally right its a BIG waste of time at this point, i have going to CC Mon and again on Fri, and all i have seen them do is mark the TV's from 10% to 15% everything else is 10% to 30%, yes i did make two purchases both of which were good not great. PS3 controller for 34 and the 4 base charging station for the wii with the 4 batterys 38. but everything else is not worth it, unless your going for accesserys right now, that are going off teh shelfs. But i will say people are being very dumb on purchasing items liek TV, computers, big end items that are ONLY 10% off. where you will find either at Best Buy or J&R for less.