Click here to go to our new forums at http://tw.forumosa.com
If you are a Forumosan Regular, when you log in for the FIRST TIME, you must RESET your password by using the Password Recovery system.

Usernames on the new forums must not contain any SPACES and must end with LETTER or a NUMBER; if yours does, you will be prompted to change your Username
Contact us at admin(at)forumosa(dot)com or @forumosa on Twitter or on our Facebook Page if you have any questions or problems logging back in

Global Economic Crisis

A resource forum for those interested in buying, selling, or developing a business; for questions about retirement plans; investing and basically any aspect of acquiring, keeping and increasing one's personal stash of filthy lucre.

Moderator: Charlie Phillips

Global Economic Crisis

Postby Mother Theresa » 11 Nov 2008, 13:25

Wow, big news. Anyone who works for a tech manufacturer, as I do, or who buys tech products will recognize that Circuit City is/was one of the biggest tech retailers in the world. I was stunned last week to see they were shutting down 155 stores and laying off almost 20% of their employees. But that was just triage.

Circuit City Stores, the nation's second-largest consumer electronics retailer, said yesterday that tightened credit and rapidly declining consumer spending have forced it to file for bankruptcy protection. . .

Just a week ago, Circuit City said it would shut down 155 stores and cut 17 percent of its workforce to try to stave off bankruptcy. But suppliers remained skittish, in some cases demanding payment before merchandise was received and refusing to increase credit for new purchases. On Friday, it let go an additional 1,300 employees, including staff at its headquarters in Richmond. It filed for Chapter 11 bankruptcy protection yesterday to begin reorganizing its business.

. . . Circuit City stores will remain open, and customer warranty and service plans will not be affected, the company said.

The retail industry has been rattled over the past year as shoppers slashed their spending by the largest amount in nearly three decades. Sales in nearly every category have plummeted as Wall Street imploded and housing prices remained depressed. Holiday sales are expected to have their weakest growth in years. Circuit City was the latest in a long line of retailers to fall this year. . . .

Circuit City, founded in 1949 as a Richmond appliance store, recorded annual profit of nearly $200 million just a few years ago. But . . . posted nearly $320 million in losses in the last fiscal year, its second consecutive annual shortfall. . . .

Vendors began to worry that Circuit City would not have the cash to pay them. The company's most recent quarterly filing showed that it had total assets of $3.4 billion with $2.3 billion in liabilities. According to court filings, Hewlett-Packard holds the most unsecured debt, more than $118.8 million. Samsung Electronics is due nearly $116 million, while Sony has more than $60 million in claims. Circuit City tried to assuage its suppliers by holding face-to-face meetings and closing unprofitable stores, court documents show. But vendors were skeptical, and credit tightened. . .

Under the terms of the bankruptcy, Circuit City has negotiated a $1.1 billion revolving line of credit with Bank of America that will allow it to buy merchandise for Black Friday -- the all-important day after Thanksgiving -- and the remainder of the holiday season. On Dec. 29, the credit amount will drop to $900 million.

Bankruptcy also allows Circuit City to terminate leases at the 155 stores that it announced it would close last week. In court documents, Circuit City said it hopes to emerge from bankruptcy protection in the first half of 2009. Marcum said he hopes the filing will give vendors confidence in the company's ability to pay them and create a more efficient operation.

The New York Stock Exchange suspended trading of Circuit City shares yesterday, the company said in a statement. The stock has lost more than 96 percent of its value over the past year.

http://www.washingtonpost.com/wp-dyn/co ... id=topnews

Check out their stock: http://finance.google.com/finance?q=NYSE%3ACC Basically a steady decline since the tech bubble burst in 2000, with a couple of aborted attempts at recovery. I'll not be holding my breath for them this time round.
"The internet is a monster over which we have no control. We can’t even turn it off." Jeremy Clarkson
User avatar
Mother Theresa
Maitreya Buddha (Mílèfó)
 
Posts: 12162
{ AUTHOR_TOPIC }
Joined: 13 Sep 2002, 07:53
Location: Taipei



Re: Circuit City files Chp 11 bankruptcy

Postby headhonchoII » 11 Nov 2008, 14:17

Sounds similar to the story of 3C in Taiwan and China, although 3C seem to have somehow survived here. The other factor must be online sales and direct sales from companies such as Dell.
Claim to fame: smoothly cruising towards no.11 no.10 on all time greatest poster list.
headhonchoII
Maitreya Buddha (Mílèfó)
 
Posts: 14698
Joined: 26 Aug 2002, 10:40
Location: Taipei



Re: Circuit City files Chp 11 bankruptcy

Postby tommy525 » 11 Nov 2008, 14:20

The store in Concord (slated to close) was the one I went to the most. And it was clear that it was losing business day by day when compared to FRYs and Best Buy. The writing had been on the wall for quite some time.

Does anyone remember CompUSA ??? At one time they were a giant too.
User avatar
tommy525
Guan Yin (Guānyīn)
 
Posts: 19799
Joined: 14 Sep 2006, 17:25
Location: East Bay, CALIF



Re: Circuit City files Chp 11 bankruptcy

Postby Namahottie » 11 Nov 2008, 14:26

MT, stores are shutting down here left and right. DHL is leaving almost 10,000 jobs in it's wake

The job market in the States is soooo bad right now, that McDonalds is the only thing that looks promising. Degreed or not.
@michellemalkin Just so we're perfectly fucking clear here: You're a crazy fucking shitwad. Enjoy your night. Read more at @MayorEmanuel
Namahottie
Golden Lotus (huángjīn liánhuā)
Golden Lotus (huángjīn liánhuā)
 
Posts: 8810
Joined: 19 Apr 2004, 20:54



Re: Circuit City files Chp 11 bankruptcy

Postby Mother Theresa » 11 Nov 2008, 14:37

Namahottie wrote:MT, stores are shutting down here left and right. DHL is leaving almost 10,000 jobs in it's wake

The job market in the States is soooo bad right now, that McDonalds is the only thing that looks promising. Degreed or not.


Good point. I read that DHL is also terminating its US domestic services in an effort to survive, because it can't compete in the US with FedEx and the US Postal Service. Wow, that is serious.

It's one thing to hear vague statistics about bad job reports, or analysts' abstract speculations about whether we're in a recession or not, but it's another to hear (or see in your case) real, actual, concrete stores that once thrived, being shut down left and right.

And at this point we're only stocking up on beer and videos and putting the tape X marks on our windows. The full brunt of the storm is yet to come.
"The internet is a monster over which we have no control. We can’t even turn it off." Jeremy Clarkson
User avatar
Mother Theresa
Maitreya Buddha (Mílèfó)
 
Posts: 12162
{ AUTHOR_TOPIC }
Joined: 13 Sep 2002, 07:53
Location: Taipei



Re: Circuit City files Chp 11 bankruptcy

Postby Mother Theresa » 13 Nov 2008, 17:56

All stock indices down 5% yesterday due to more BAD news, including this time from #1 tech retailer, Best Buy.

The nation's consumer electronics chains reeled for a second day this week after Best Buy Co. Inc. cautioned on Wednesday it was cutting its full-year outlook because of "seismic changes" in consumer spending. The bad news from the sector's No. 1 brand came two days after its top rival filed for bankruptcy protection

http://www.forbes.com/feeds/ap/2008/11/ ... 85497.html

Stocks plunged and the Nasdaq Composite fell to its lowest level in more than five years as the chief executive of Best Buy warned that the consumer-electronics retailer is contending with the most-difficult consumer-spending environment he had ever seen. . .

Intel warned of weak demand in all its units and markets. . .

Best Buy fell . . . 8% . . . The retailer slashed its profit outlook and warned that sales in stores open a year or more could fall between 5% and 15% in the current quarter. . .

American Express fell . . . 10% . . . Citigroup fell . . . 11% . . . Morgan Stanley fell . . . 15%. . . General Electric fell . . . 8.5%. . . Exxon Mobil fell . . . 5.1% . . . Chevron declined . . . 8.5% . . .

http://online.wsj.com/article/SB1226502 ... lenews_wsj


Image
"The internet is a monster over which we have no control. We can’t even turn it off." Jeremy Clarkson
User avatar
Mother Theresa
Maitreya Buddha (Mílèfó)
 
Posts: 12162
{ AUTHOR_TOPIC }
Joined: 13 Sep 2002, 07:53
Location: Taipei



Re: Circuit City files Chp 11 bankruptcy

Postby tommy525 » 14 Nov 2008, 00:31

Its time for people to spend money. I helped BestBuy a tiny fraction by buying a new puter.
User avatar
tommy525
Guan Yin (Guānyīn)
 
Posts: 19799
Joined: 14 Sep 2006, 17:25
Location: East Bay, CALIF



Re: Circuit City files Chp 11 bankruptcy

Postby Enigma » 14 Nov 2008, 02:05

Back a few years ago, I had a business and need 10 new computers. I went to Circuit City. I loaded the computers onto 2 carts. My wife and I wheeled them to the counter with cash in hand. After the clerk rang them up, she asked for my social security number. When asked why she needed this information, I was told that it was for the warranty. I refused. She insisted. I walked., laeving the computers on the cart at the checkout counter. Now, why is anybody surprised that this company failed.
Enigma
Time to Marry a Local (gāi qǔ tái wān lǎo pó jià tái wān lǎo gōng liǎo)
Time to Marry a Local (gāi qǔ tái wān lǎo pó jià tái wān lǎo gōng liǎo)
 
Posts: 2281
Joined: 07 Dec 2004, 17:02
Location: South on 3, Tuchen exit, in pursuit!



Re: Circuit City files Chp 11 bankruptcy

Postby tommy525 » 14 Nov 2008, 03:02

Enigma wrote:Back a few years ago, I had a business and need 10 new computers. I went to Circuit City. I loaded the computers onto 2 carts. My wife and I wheeled them to the counter with cash in hand. After the clerk rang them up, she asked for my social security number. When asked why she needed this information, I was told that it was for the warranty. I refused. She insisted. I walked., laeving the computers on the cart at the checkout counter. Now, why is anybody surprised that this company failed.


I can totally agree. Lunatics. Their managers did them in.
User avatar
tommy525
Guan Yin (Guānyīn)
 
Posts: 19799
Joined: 14 Sep 2006, 17:25
Location: East Bay, CALIF



Re: Circuit City files Chp 11 bankruptcy

Postby Namahottie » 14 Nov 2008, 06:58

tommy525 wrote:Its time for people to spend money. I helped BestBuy a tiny fraction by buying a new puter.


And you're still typing the same ole shit? :beatnik:

Da Boss says CEOs are warning of huge layoff in Chicago
Mayor Daley said Wednesday he’s been warned by a parade of corporate CEOs that a blizzard of job cuts are about to bury the souring Chicago economy.

“Huge layoffs are coming in November and December. And next year, there’s going to be [even more] huge layoffs. All the corporation CEOs have come in to tell me. That’s just the beginning. It’s not their end result,” Daley told reporters after a City Council meeting.


1) I left Taiwan why?
2)I'm getting a post-grad why? :doh: :roll: :loco: :noway:
@michellemalkin Just so we're perfectly fucking clear here: You're a crazy fucking shitwad. Enjoy your night. Read more at @MayorEmanuel
Namahottie
Golden Lotus (huángjīn liánhuā)
Golden Lotus (huángjīn liánhuā)
 
Posts: 8810
Joined: 19 Apr 2004, 20:54



FRIENDLY REMINDER
   Please remember that Forumosa is not responsible for the content that appears on the other side of links that Forumosans post on our forums. As a discussion website, we encourage open and frank debate. We have learned that the most effective way to address questionable claims or accusations on Forumosa is by engaging in a sincere and constructive conversation. To make this website work, we must all feel safe in expressing our opinions, this also means backing up any claims with hard facts, including links to other websites.
   Please also remember that one should not believe everything one reads on the Internet, particularly from websites whose content cannot be easily verified or substantiated. Use your common sense and do not hesitate to ask for proof.
Next




Return to Money



Who is online

Forumosans browsing this forum: No Forumosans and 1 guest

cron