corporateabuse.net

With another “Great depression” on the way, what does the consumer have to look forward to? Circuit City, is the answer. Today Circuit City announced it has failed the 60 year old business. 34,000 employees of Circuit City will now join the ranks of the unemployed. But you the consumer will be able to shop this weekend as their stores will be in liquidation mode. Don’t expect great deals, or even good customer service. There is one goal now, and that is to pay as much back to creditors as possible.

A once mighty giant that achieved a stock price of over $40.00 per share is closing out at around zero today.

Circuit City’s website is still fully functional, and to the average consumer you wouldn’t even be able to tell they were going under, this should change within the next few business days. Hilco Merchant Resources and Gordon Brothers Retail Partners will most likely continue with the liquidation process for Circuit City, here is a great example of their fine work. You might remember them best from the failed CompUSA liquidation. They were the one ones who over inflated the price of electronics to make the consumer feel as if they were getting a great deal. check out more of that exapmle over at consumerist.com.

Lots of questions will arise from this retail tech crisis such as; Are Circuit City’s extended warranties affected by the liquidation? Well according to Circuit City, the answer is no. They state that those warranty’s are protected by a third party. But Circuit City Advantage Protection Plans®, backed by Assurant Solutions companies, have had issues. check out this comment from a user over at the consumerist in regards to Assurant;

“I reluctantly purchased the warranty for my projector July ‘06 after the salesperson convinced me I needed to in case the bulb burned-out, he said they are expensive and the warranty would cover the bulb. A year later the bulb burns out and I send it in to get fixed. I get the projector with a note saying the bulb will be mailed seperately. 5 months and 3 calls later Assurant Solutions tells me they have had to tell other CompUSA customers that the bulb s not covered. I’m writing an article for the city paper about this as well as the TX State AG and BBB, just in time for Christmas.”

could there be more of this in the near future from Assurant, as they no longer have a need to appease the management at Circuit City. If you have more questions about Circuit City going under check here for answers media FAQ’s

So if you venture out this weekend in hopes of great buys at Circuit City, don’t bother wasting your gas. You will encounter over inflated prices, false promises on “great warranties”, and who knows maybe a Circuit City employee who just found out they will not be able to feed their family anymore. Not all former employees will be disgruntled though, Philip J. Schoonover former CEO, and chairman of the board received 1.8 million plus $50,000 for being fired, and lastly the acceleration of the vesting of his stock option and restricted stock awards that would have vested prior to October 4, 2009.

Share this