Bankruptcies, Layoffs
Circuit City files for bankruptcy
Circuit Shitty City has filed for Chapter 11 bankruptcy with $2.3 billion in debt. The failing electronics retailer will continue operations throughout the holiday season, but will be laying off 700 more employees at its corporate headquarters. The bankruptcy comes just a few days after the company announced that the company would be closing 1/5 of its stores.
The move doesn’t come as much of a surprise — Circuit City has only had one profitable quarter over the last year and has seen its customer base dry up. Chief financial officer Bruce Besanko cited three reasons for the filing: 1. erosion of supplier confidence, 2. decreased liquidity, and everyone’s favorite #3 — the global economic crisis.
Shoutout to the executive team: Bruce “Chartin’ It” Besanko, Reginald “Doctah Drop” Hedgebeth, Eric “Weigh-Liota” Jones, James “Jimmy-Poo” Marcum, John “Down Jones” Harlow.
[Yahoo Finance] Circuit City files for bankruptcy protection
whoa this one came out of left field… o wait.
Circuit City is an old school, poorly formatted electronics store, that can barely keep up with Radio Shack, let alone superstores like Best Buy and Wal-Mart. I’m personally happy to see them closing shops in my neighborhood. I’d rather them open up a Bed, Bath & Beyond.
Caleb
http://www.mefinanciallyfree.blogspot.com
Remember when Circuit City was a favorite in “Good to Great” by Jim Collins? Remember when we thought being big gave you clout with customers and vendors to produce long-term returns (Michael Porter’s 5 Forces Model)? It’s time we recognize that the old approach to management doesn’t work in a rapidly shifting competitive world. There are winners in today’s market, but they follow a different approach. Read more at http://www.ThePhoenixPrinciple.com