CIRCUIT CITY THREATENS TO PULL THE PLUG “One out-of-court solution the company is studying would likely lead to the closing of at least 150 stores and the elimination of thousands of jobs, said people familiar with the company’s plans. This would let the retailer liquidate about $350 million in inventory, which it could use to pay off certain real-estate costs, such as leases on abandoned sites. It would then hope to press existing landlords to renegotiate leases, many of which Circuit City regards as overpriced. Circuit City’s investors have homed in on those leases as a threat to the company’s health. Many were negotiated when real-estate prices were booming earlier this decade. Roughly 90% of the leases don’t expire until 2014 or later, and about 80 are for vacant locations.” There are 714 Circuit City stores in the U.S., 15 of them in Houston. [Wall St. Journal]
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And think, the new HEB shopping center on I-10 near Blalock or Campbell is supposed to have a new Circuit city in it!
HEB and Academy were the two other large tenants.
If there was ever a text book case of how NOT to run a business, Circuit City is it. Each time I make the mistake of going to the Uptown one, I quickly realize why I never go there. The staff don’t care, the store smells funny, the merchandise is haphazardly thrown on the shelves. The weekly flyer means nothing, often times I’ve walked in at opening on Sunday to get an advertized ‘bargain’ only to hear them say the item is sold out and there are no rainchecks. Sold out?? Are you kidding me? The sale started when the doors opened, I’m the only one in the store and you’re sold out? Thats Circuit City for ya. No thanks. A body cavity search is more enjoyable than a trip to Circuit City.