The Source (Circuit City Canada) Sold

BCE Inc, Canada’s largest telecom, has agreed to purchase The Source which was previously owned by Circuit City.  Circuit City has been looking for a buyer for it’s chain in Canada since filing for bankruptcy in November 2008.  

BCE will use the retail locations to expand it’s vast retail presence and to push it’s products accross the 750 stores in this acquisition.  BCE also stated this move will allow it to expand its retail foot print faster and cheaper than building out the chain.  It was also stated the chain had nearly $500 million in revenue for 2008.

The purchase price will not be released until the acquisition is completed.

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Circuit City to Liquidate

Circuit City announced Friday it will begin liquidations of all of it’s remaining 567 stores beginning Saturday (yesterday).  Someone could still step up and purchase all or part of the company to rescue it but it’s highly unlikely at this point.  34,000 employees will be let go as stores begin to close which is expected to be completed by March 31, 2009.  The company said in it’s press release that employees will receive 60 days notice of termination.  If they are layed off prior to that they will receive pay for the full 60 days. 

What’s the point of laying them off before the 60 days then?  If they stay at work at least your getting something for your payroll expenses.

One bright spot is Circuit City’s website business which tops $1 Billion in an average year.  That alone could attract a potential buyer for it’s online business.  That could lead to less loses on the backend if you’re a vendor that sold merchandise to the company.

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Circuit City auction underway

Seems that Circuit City is having some financial problems following a dismal year and an even worse holiday season.  An auction began on January 13th for investors to buy the entire chain, individual stores and even assets.  If a “white night” investor or some other company steps up it looks like Circuit City will be liquidating relatively soon.  

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Circuit City announced it has until next week to find a buyer before they are forced to begin liquidation of it’s stores.

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