Circuit City Files for Bankruptcy
Folks, as predicted in my last posting regarding Circuit City, the company is filing for bankruptcy. I hope those of you who have a Circuit City gift card have used them. If you haven’t, your widow of opportunity to use them may be short. According to this story from Bloomberg, Circuit City has filed for chapter 11 bankruptcy protection. This means that the company hopes to reorganize its operations and emerge from bankruptcy as a leaner and more efficient company.
However, while I sincerely hope they emerge a better company, this is not a time to hope. If you have a Circuit City gift card, NOW is the time to use it.
My sense is that the company will continue to honor gift cards even during bankruptcy since they will not risk angering the very customers they badly need during this difficult time, including gift card holders. However, as seen with Linens ‘n Things, bankruptcy reorganizations don’t always go as planned, and may lead to eventual liquidation. Circuit City may survive but in today’s economy, you never know.
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H.H. Gregg is accepting all Circuit City Gift cards in their stores. Up to 20% of the purchase price starting tomorrow. I received an e-mail blast earlier this evening about it.
Dan, thanks for passing along the information. For those interested in this deal, here is the link: http://www.hhgregg.com/dynamic.asp?SID=n&did=1015
I have a 550.00 Circuit City gift card. I planned to use it “Black Friday” or the following week assuming CC will lower prices more on their big screen TV’s. HH Gregg will honor them towards max of 20% of a purchase, only until 11/25, so that doesn’t help. Do you think it’s a bad gamble to wait past then?
Steve, in today’s economic environment, nothing is certain, but the fact that Circuit City is not only honoring gift cards but also issuing new ones tells me they think they can survive at least through the holidays. So, you should be fine if you use your card by 11/25. Beyond that, anything is possible.