Is Circuit City still accepting gift cards? Bankruptcy looms.
Circuit City may go bankrupt by Friday if a buyer does not step in, the Washington Post reports. What I'm wondering is if the big box electronics store is still accepting gift cards?
Circuit City filed for chapter 11 bankruptcy in November, which allowed it to reorganize.
"Circuit City attributed its November bankruptcy filing to the credit crunch," the story says. "Officials said 75 percent of the company's transactions are made on credit cards. Sales plummeted as consumers were no longer able to get credit or scaled back on their purchases.
"Declining sales hindered the company's ability to make inventory payments to vendors, who in turn tightened credit on Circuit City. As a result, the company was limited in buying merchandise to stock its shelves."
If a buyer does not step in soon the company could go out of business. Read the full story here.
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About The Bargain Hunter
Daily News staff writer Julia Scott loves to find bargains on everything from groceries to Gucci. Her tips will help keep your hard earned cash where it belongs - in your pocket.
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Julia,
I think you meant "liquidation" looms, as you already metioned that Circuit City is in bankruptcy.
I stopped by the Valencia store on Sunday, and the store was very slow, but not surprised because it is traditionally slower after the holidays.
Considering it was Sunday though when many people shop, the store was in my opinion too quiet, even for after the holiday shopping season..
Circuit City continues to sell and honor gift cards, however as we know from previous store liquidations, most likely, the liquidator(s) hired will not accept any gift cards for payment and then you become a creditor. Good luck.
http://www.circuitcity.com/ccd/giftcard.do
I'm assuming many already know the bankruptcy proceedings that Circuit City is currently under, and are being cautious about purchasing from the troubled retailer.
Of the scuttlebutt as to whom (if anyone) would purchase the chain, I can only assume some bidders may want the location(s) for other purposes, maybe Best Buy to fill-in holes in some of their markets, but not the whole chain.
The words in their cleverly written release all but say liquidation without actually saying the word, something like inventory disposition.
With Linens n' Things, Levitz and Wickes boxes approximately the same size as Circuit City (some smaller, some larger), I wouldn't be surprised that Best Buy hasn't already picked-up some of the other chains former boxes and may not need any of Circuit City's locations.
If Circuit City liquidates, I wonder who will pick-up their Santa Monica location? I understand that is one of Circuit Ctiy's top performing locations, but again, you have Best Buy on Pico.
The part about credit, I'm wondering if J P Morgan Chase/WaMu who holds the liabilities for the Circuit City private-label credit card has stopped approving new and/or exteneded lines of credit, similar to the cessation of new credit/leases by GMAC and Chrysler Financial?
Another chain that is probably ready to file bakruptcy is Fresno-based Gottschalks department stores which has two locations at the Antelope Valley Mall in Palmdale (one is a holdover from Harris Company) and stores also in Riverside, San Bernardino, Redlands, Victorville, Hemet, Palm Springs and Indio.
SO_CAL_RETAIL_SLUT
This is one of the many gifts Bush has given us as a going away gift due to his greed and stupidity! Folks we have been “Bush Whacked” once again! So the only things we can do is hope Obama does a better job and wish everyone a “Merry Bushmas”!!
Mark B.