Circuit city locations
The Circuit City Company is the second largest U.S. retailer specializing in the sale of equipment. According turnovers Circuit City is just behind market leader Best Buy and the world\’s largest retailer Wal-Mart.
On August 27, 1984, Forbes magazine published an article about Circuit City. This was the first detailed article about the company ever published in a national magazine. It raised the question whether the recent rise of Circuit City will have continued.
Still, it was the first public acknowledgment that Circuit City has achieved rapid growth. This sudden success, however, has been preparing during more than ten years. Alan Wurtzel inherited the post of the company head from his father in 1973, when the company was on the verge of bankruptcy. First, he updated the guide and openly stared at the harsh facts – internal and external. In 1974, still under the weight of massive debt, Wurtzel and his team began to experiment with the new format stores, which resembled a large warehouse or showroom (large stocks of goods-known brands, discounts, immediate delivery), and built a shop of its kind in Richmond , Virginia to trade electronically. In 1976 the company began experimenting with selling electronics in the same style, but in 1977 they have implemented this concept in the first paragraph of the future Circuit City locations.
The concept proved successful results and began to spread various Circuit City locations through the whole country. In 1982, after nine years of rotation of the flywheel, Wurtzel and his team concentrated all efforts on developing the concept of Circuit City superstores. Within five years, when they moved to a whole new style, the total return on shares of Circuit City was higher than any other company in the New York Stock exchange. From 1982 to 1999, the yield on shares of Circuit City was 22 times higher than the average for the market, easily surpassing Intel, Wall-Mart, GE, HP and Coke.
Today, U.S. electronics retail chain Circuit City announced the final disposition. The company is going to provide the legal procedure of assets liquidation, after which 30 000 people, who still worked in different Circuit City locations, get the latest results and went looking for another job.
For the first time on the verge of bankruptcy, the company announced in November last year, when has provided all the notification documents to the U.S. market regulators, in the event of legal action from the side of debtors the Circuit City could work without interruption.
Circuit City said that the net indebtedness of the company to creditors and suppliers of the products is more than 1.1 billion dollars. To pay the money without increasing the turnover of sales or obtaining a loan is impossible. The vendors don’t agree to supply goods for further loans, and to get a bank loan is impossible, besides the sales volume of the company has fallen sharply.
The last two months, Circuit City was looking for opportunities on the buyout of salary, after which the company had to close all its 566 stores.