Circuit City Loss Widens, Pulls Outlook Amid Review (CNN)

[Drew Wilson]

Circuit City Stores Inc. (CC) put the brakes on expansion and hinted it may finally close weaker stores as its second-quarter net loss widened and cash reserves dwindled.

With customer traffic falling sharply as the No. 2 U.S. consumer-electronics retailer heads into the critical holiday selling season, Circuit City also blamed some product shortages on its own aggressive inventory management. Wall Street expressed growing fears that vendors are also keeping the retailer on a tight leash in terms of product availability, and shares fell 15.1% to $1.15, a nearly 23-year low.

"It may be necessary for Circuit City to consider reorganizing as part of a strategy to rid itself of its unprofitable stores," Raymond James & Associates analyst Dan Wewer told clients.

"Circuit City's pressures are coming from all sides - and the overarching macroeconomic conditions are still quickly worsening," said Stifel Nicolaus analyst David Schick. "The risks of bankruptcy are very real, in our opinion."

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[mountain_rage]

Nice! I could use a new laptop, can someone say liquidation sale?

[shawners]

I found better deals when compUSA closed. More stuff online that was in a same price range with many online retailers.. But as I live in Texas. I cant buy a product from them because TAX would make the product jump too far high.

Get it Tax free, and free to minimal amount of shipping fee is the way to buy electronics. Circuit city has been doing more to compete with online shopping but its just they have to many stores in all states that would easily add 20-80 dollars to the product because of the TAX.

[Mels_Smileys45]

The Circuit City here closed out a few years ago. Best Buy pretty much buried them.