Circuit City might yet outdo Best Buy on Black Friday deals for another year. Bank of America has given Circuit City a $US1.1 billion loan that’ll help cover its operating expenses until it’s expected to come out of bankruptcy next year, giving it a second chance. Still, I don’t see how even a billion dollars will cover all the money they owe people like Samsung and HP. I mean, I’d be busting some kneecaps if I were them.
Circuit City is over $US2.3 billion in debt. It owes $US119 million to HP and over $US116 million to Samsung—it’s not a stretch to imagine they owe double digit millions to Sony and LG too.
Still, will Circuit City use this second chance to make amends like near-death experience survivors normally do, or will it simply relapse into another black hole suckage, so we’ll get to do this dance all over again next year? I hope they pull it out, personally—their new releases are always at least a buck or two cheaper than Best Buy, and I can stand being ignored for five minutes to save a dollar. [Bloomberg via Consumerist]
wzahedi
December 26, 2008 at 3:45 AM
Circuit City is horrible. They got rid of their best sales associates and now want people to invest their buying money in teenage sales people who don’t know the product or care about their customers. Same as Best Buy, just worse.
I will always shop at a commissioned based company, small regionals, at least their sales associates paycheck depends on making the sale. Also, they’ll show you the best for your money instead of pushing Visio, insignia or some other crappy chinese made product that won’t live long. Cheap is not quality. Quality is value you put into the product you buy. It’s ok to open your wallet and let money out if your family is going to enjoy it.
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