Circut City files for bankruptcy...

V

Vicariously

living in a fantasy world
Joined
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the only thing I can possibly see happiness in about this news is that perhaps things will go on sale before they shut their doors. This is just one more hit on our failing economy...can someone please give me some GOOD news about how our economy might possibly be improving?!?!?! Everyday it seems as there are more and more layoffs and more and more businesses failing. Its down right depressing...

http://http://biz.yahoo.com/ap/081110/circuit_city_bankruptcy.html

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Vicariously said:
.can someone please give me some GOOD news about how our economy might possibly be improving?!?!?
http://http://biz.yahoo.com/ap/081110/circuit_city_bankruptcy.html
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That has nothing to do with economy; it has to do with poor management decisions. It has been speculated for several years. Hello? DIVX?? That was going to 'make' CC but it broke them. In the end they just could not compete with Best Buy; every attempt fell short. If anything the economic troubles maybe sped it up, it (CC) has been sinking for awhile. Blockbuster will be next, and that cannot be blamed on the economy either.
 
scobro it does have to due with the economy because it directly effects thousands of workers...it also affects distributors and distributing companies...stock holders....its just not good. Its as simple as that.
 
Vicariously said:
scobro it does have to due with the economy because it directly effects thousands of workers...it also affects distributors and distributing companies...stock holders....its just not good. Its as simple as that.
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But they are not going out of business due to the economy. Never said it was good.. but it shouldnt be spun to say it failed because of the economy. That just causes me panic. Same with GM, that has been doing poorly for years- due to decisions and not the economy. Poor management coupled with the economy is at fault, but poor management plays a larger part than the economy I feel.
 
in part I feel your right but I do think that the economy has alot to do with why businesses are failing.
 
Vicariously said:
in part I feel your right but I do think that the economy has alot to do with why businesses are failing.
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Some.. but in the case of Circuit City they paid $114 million for essentially a laughing stock; proclaiming DIVX was going to be the new standard in DVD.. they hinged the entire company on DIVX and have been treading water ever since.
 
yes but wasnt that back in the 90's when they were trying to promote Divix? Certainly they would have recouped their losses from that...They didnt market soley that product alone. They marketed other major household appliances...such as whirlpool and GE. So what does a major distributor for those two companies going bankrupt mean for those comapnies? It is gonna hurt them as well. Just like if GM and Ford goes under...that meanse that sub contractors suffer as well.
 
Agreed; but GM has been feeling the pressure for years as well. They were told one way for them to increase sales and profits was to market to the European markets by making "left" cars. They opted not to do so. As far a CC was concerned it was more than just recouping loses, it affected how the company was viewed etc.

I fully understand what you are saying, but if these companies were better managed they would not be hit as hard as they are being hit. The trickle down effect is what will be bad.
 
Exactly! so we agree on all angles here now. Better management is crucial...but overall the trickle down affect is going ot be huge I just hope the other companies will manage their losses better.
 
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