What’s Next For Circuit City?

Now that Blockbuster is no longer interested in acquiring Circuit City, what is next for the electronics chain?

Blockbuster and its major shareholder Carl Icahn backed out of their $1-billion-plus offer after Circuit City opened its books for the suitors. Apparently, they didn’t like what they saw.

A MarketWatch commentator speculates that if Blockbuster, which has its own issues, isn’t interested, then chances are that other potential suitors aren’t either. Sources are telling BusinessWeek that Circuit City is near filing for bankruptcy protection. And to top it off, one of the chain’s board members has resigned.

To be fair, we didn’t hear many people say they were crazy about this deal in the first place. So what’s next? Will another retailer step in? Or is Circuit City’s future bleak?

3 Responses to “What’s Next For Circuit City?”

  1. 1 Nancy H July 3, 2008 at 1:04 pm

    Bleak. They don’t have the right inventory to be attractive to just any retailer, and trying to buy them up and create something that can compete with Best Buy, or even Ultimate Electronics, would be nuts in this economy. Unless they can weather the rest of the year and limp through the holiday season, I think CC is on their way out the door.

  2. 2 little nat July 8, 2008 at 8:31 am

    I would think Sears/Kmart would step forward then place the CC operation in their appliance dept.They have a lot of room to fill and could be a good marriage to help them create traffic and they need it bad. Sears has the sq. feet and CC has the mdse. Why not,who would have thought that Sears and Kmart would marry.

  3. 3 Craig N July 8, 2008 at 11:09 am

    When the Sears/Kmart deal was originally announced, one of the best comments about it was a description of “two drunks propping each other up”. I don’t think that three drunks propping each other up would be a solution either. CC has not marketed or branded nearly as well as BB. They don’t have the service or the presence of BB and it feels to me like they are simply on the losing end of a market that has become more commoditized over the years. Anyone remember Fretter, Highland, Silo, Polk Brothers, Elek-tek? The market shifted and they failed to accomodate. That’s the death knell in the ever changing world of retail.

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