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Just finished reading Good to Great too Gone, great book still say what a damn shame.
Maybe in a few years, we can organize a ccty/cctyq board reunion...
It's at times like this that I really wish that I had listened to what my grandfather told me when I was 6.
What was that?
I don't know. I wasn't listening......
Happy New Year to the former shareholders of CCTY.
Thanks, m2f. I'm glad I didn't buy any.
CCTYQ Circuit City Stores, Inc. Common Stock 9/28/2011 100 Plan of Bankruptcy Effective. All shares have been cancelled. Deletion time: 11:07:21 **
Anyone know what's going on with the company? Thanks.
Yea its stock is still trading its PPS is higher than most pennies
And still trading......
It is a head scratcher as to why anyone would still buy here, but you see it in Q stocks fairly often. I don't think there is really any fate for the shares here other than being eventually canceled.
Why that hasn't happened yet or if there is any other possible scenario here I really don't know.
The only reason I bookmark this is because I watch presumably dead issues just to see what happens as it winds down. Sometimes you learn interesting things in odd places.
well, that's it. Shareholders will receive nothing. Here it is in black and white:
http://www2.timesdispatch.com/business/business/2010/sep/09/b-circ09-ar-495901/
my question is: 32% of what? $5.00? $1.00? $0.01?
http://www.bloomberg.com/news/2010-09-01/tronox-tribune-circuit-city-centaur-visteon-u-s-concrete-bankruptcy.html
Circuit City Plan to Pay Up to 32% after Sept. 8
Circuit City Stores Inc. is scheduled for approval of a revised liquidating Chapter 11 plan at a Sept. 8 confirmation hearing. Unsecured creditors were told to expect a recovery between 10 percent and 30 percent on claims totaling from $1.8 billion to $2 billion.
When Circuit City received approval of the original disclosure statement last year, creditors were told not to expect more than 13.5 percent.
Eastman Kodak Co. is objecting to confirmation of the plan unless it’s modified so there is a definite date when the plan will be implemented. Without changes, Kodak says that implementation of the plan will be “controlled by one or more of the plan proponents or by parties outside of this court’s jurisdiction.”
Circuit City and the official creditors’ committee had been at loggerheads over details surrounding the plan until mediation broke the impasse. The revised plan took the place of the version originally filed in August 2009. The creditors’ committee filed a plan of its own in June.
The original plan was initially scheduled for a confirmation hearing in November.
Once a 721-store electronics retailer, Circuit City paid off all except about $5 million to $20 million in secured claims through proceeds from store liquidations. The Chapter 11 filing was in November 2008, in the company’s Richmond, Virginia, hometown. The petition listed assets of $3.4 billion and debt totaling $2.3 billion as of Aug. 31, 2008. Papers originally listed $898 million owing to the secured revolving credit lenders. Unsecured trade suppliers were owed another $650 million at the outset, the company said in a court filing.
The case is In re Circuit City Stores Inc., 08-35653, U.S. Bankruptcy Court, Eastern District of Virginia (Richmond).
more news just found.
http://www2.timesdispatch.com/business/business/2010/aug/10/b-circ10-ar-419692/
http://www2.timesdispatch.com/business/business/2010/jul/23/b-circ23-ar-347441/
Richmond, VA: An impasse between Circuit City and a group of its largest creditors that has delayed the approval of its liquidation plan has been settled, thanks to the help of an outside mediator.
Lawyers for both parties told U.S. Bankruptcy Judge Kevin R. Huennekens yesterday that they reached a compromise on differences at a mediation session in Norfolk last week. Huennekens had ordered the parties to attend mediation last month.
"We think we've resolved the issues," Jeffrey N. Pomerantz, a lawyer for the creditors committee, said via telephone during the hearing.
The sides are awaiting a decision from a Canadian court on a pending tax issue that cropped up from the sale of Circuit City's Canadian division. The ruling could open up issues that would need to be mediated.
Gregg M. Galardi, Circuit City's lead attorney in its bankruptcy case, told Huennekens that drafts of the agreement were being prepared and that he would pass those on to the creditors' lawyers soon for them to review.
The liquidation plan would spell out how creditors would be paid.
A final hearing date to approve the plan was not set, though Circuit City and the creditors hoped to do so in September.
The plan was filed in November. A hearing on approving that plan had been put off several times since then because of various issues.
As the company worked to settle the issues, the creditors committee and Circuit City continued to work out details of the plan. Frustrated by the lack of progress, the creditors' committee filed its own plan in June.
Among the issues were details in the bylaws and makeup of a committee that will oversee a liquidating trust set up to distribute any remaining money from the sale of the company's assets.
At yesterday's hearing Galardi said the amount creditors are set to receive would not change. In the original plan filed last year, unsecured creditors, such as suppliers, would get as much as 13.5 cents on each dollar owed.
found this today...it's about 1/2 way down the page
http://www.bloomberg.com/news/2010-07-15/gsi-capmark-spheris-circuit-city-spansion-lucien-piccard-bankruptcy.html
Circuit City Has Buyer for Land Under Head Office
Circuit City Stores Inc. has a $2.75 million offer for the sale of land in the Deep Run Business Park in Richmond, Virginia, where the corporate headquarters was located. The property being sold doesn’t include the building.
Other bids are due by July 27. An auction will take place July 29, followed by a hearing to approve the sale on Aug. 4.
Circuit City and the official creditors’ committee are at loggerheads over details in the liquidating Chapter 11 plan. The bankruptcy judge sent them to mediation with instruction to report to him at a July 22 status conference.
Circuit City and the committee jointly filed a liquidating plan in last August for the former 721-store electronics retailer. They couldn’t agree on who would control the liquidating trust to be created under the plan.
In addition to the dispute over the liquidating trust, the plan couldn’t be confirmed in view of outstanding Canadian tax claims.
All except approximately $5 million to $20 million in secured claims were fully paid from store liquidation proceeds. Unsecured creditors with claims ranging from $1.8 billion to $2 billion were estimated to have a recovery ranging between nothing and 13.5 percent, according to the explanatory disclosure statement for the joint plan.
Circuit City filed under Chapter 11 in November, 2008, in its Richmond, Virginia, hometown, listing assets of $3.4 billion and debt totaling $2.3 billion as of Aug. 31, 2008. Papers originally listed $898 million owing to the secured revolving credit lenders. Unsecured trade suppliers were owed another $650 million at the outset, the company said in a court filing.
The case is In re Circuit City Stores Inc., 08-35653, U.S. Bankruptcy Court, Eastern District Virginia (Richmond).
Hi pax, ..yeah they were for the online biz. And I think you're correct.
Quik18holes, what kind of emails? For the online business? If so, I don't think that's associated with cctyq anymore.
Been getting alot of email ads lately. Fyi~
CCTYQ
So when will the debts be paid off again?
In my area, the old circuit city's are now hhgregg. When will all the CC assets/bills be rectified?
This from another board
http://en.wikipedia.org/wiki/Circuit_City_(1949%E2%80%932009)
Systemax and Circuit City. Something to research this weekend?
Cash on hand at the end of February per 8-K dated 4/15/2010.
$443,950,393.00 This number keeps growing, month to month.
http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=7191978-9468-88292&type=sect&dcn=0000104599-10-000014
never mind... i didn't read further down on the messages.
anybody heard any news on this, seems to be moving up slowly.
just havent been any post lately is this thing dead in the water?
Nevermind, somebody just bought shares for .11! lmao
ahh yes mexico's richest mexican. "Salinas" this guy is becomeing more and more infamous folks. according to my calculations/:) this guy bought almost all the CCTYQ (circut city) shares, a while back. and either still owns or something like that. anyway his plan at that time was to infultrate the BK company just to make it his own. Does anyone know why hes trying to consume WAMUQ as well?
Now What i dont like about this guy, and i wont go into details. but he has taken leagal possetion of defaulting companys by helping them recover under his finacial contracts. now in any other cases this is biz as usual, but not for salinas he has begun to hire no other ethnic race other then his own. im not being rasist nor am i by any means, just wondering whats happening to job security and why were folks i know told they dint get the job because they were not bilingual , and if anyone wants to do a lil homework/DD you find that this guy has tons of $ to burn and the things he will do with it will have deep impact in society, i know right how can one person cause so much?. its all about money..
Or perhaps hes doing what alot of companys do, like new biz they hire new ppl every so many months because it saves them from having to pay anykind of benifits,,a person who works for certain companys are sometimes entiteld to medical or some kinda of benefits. this is why job security sux in america or cali anyway. IMO. but yeah maby he buys BK stocks and is able to count it as a loss on taxes? getting more per pps thru his taxes hell i dont know maby someone here does.
Either way im still holding, till the sun burns the earth up. or we go 000000 lol ...
Cash is still 326mil but creditors will need to be paid and SALINAS PLIEGO RICARDO BENJAMIN still owns 47,182,688 what to make of this?
At this moment I am on the sidelines having got out on the last small run. Currently in on some major potential runs for three separate stocks. Its funny because all roads seem to lead to the same date on all three. I have not looked at the latest CCTYQ developments but will take a look now that you mentioned it
Nascow you still in?
what do you think april 1st is it?
these are people who own shares still and has not sold look whose name is there?
11/14/2008 PLIEGO RICARDO SALINAS
Not Supplied 5,207,000 Open Market Purchase
Cost $1,353,820.00
11/13/2008 PLIEGO RICARDO SALINAS
Not Supplied 19,830,000 Open Market Purchase
Cost $4,759,200.00
11/12/2008 PLIEGO RICARDO SALINAS
Not Supplied 5,320,248 Open Market Purchase
Cost $1,170,454.56
11/12/2008 PLIEGO RICARDO SALINAS
Not Supplied 16,825,440 Not Supplied
*** Undefined Type ***
08/22/2008 BRUCE H BESANKO
Chief Financial Officer & Executive Vice President 225,000 Award of Stock
*** Undefined Type ***
08/21/2008 RONALD L TURNER
Director 8,873 Exercise of Stock Options
at cost of $0.00
08/21/2008 RONALD L TURNER
Director 213 Exercise of Stock Options
at cost of $0.00
08/18/2008 JAMES A MARCUM
Vice Chairman 600,000 Award of Stock
*** Undefined Type ***
06/26/2008 CAROLYN Y WOO
Director 6,481 Exercise of Stock Options
at cost of $0.00
06/26/2008 RONALD M BRILL
Director 6,481 Exercise of Stock Options
at cost of $0.00
What is up with this? -
Circuit City’s ex-CEO to get $350,000 in bonuses
A judge wrote that James A. Marcum earned his bonus because of his work winding down the now-defunct consumer electronics retailer.
By Louis Llovio
Published: March 16, 2010
While Circuit City’s creditors wait to get paid, James A. Marcum, the company’s former acting president and CEO, will collect $350,000 in bonuses and charge $700 per hour in consulting fees.
U.S Bankruptcy Judge Kevin R. Huennekens approved the bonus and the fee last week.
In an order filed Thursday, the judge wrote that Marcum earned the bonus because of his work winding down the now-defunct consumer electronics retailer, once the nation’s second largest.
“The full experience, expertise, unique skills and enthusiastic involvement of Mr. Marcum has been beneficial to the [Circuit City’s] efforts to maximize value for their estate,“ Huennekens wrote.
Circuit City filed for bankruptcy in November 2008.
Two months later, the Henrico County-based retailer announced it would liquidate its assets, shutter its remaining stores and dismantle the company. At the time, Circuit City had about 600 U.S. stores and 34,000 U.S. employees, including about 2,000 in the area.
As part of that wind-down process, remaining employees must get as much out of the remaining assets as possible. The money they collect goes to creditors.
The bonus money going to Marcum will be paid in two installments.
The first $175,000 was to be paid within three days after the order was approved. The second half of the bonus will be paid once a final liquidation plan goes into effect.
Marcum, who took a job last month as president and CEO of Nashville, Tenn.-based Central Parking Corp., will receive the consulting fees for helping Circuit City as it finalizes and gets approval on the plan that spells out how creditors will get paid.
Under the consulting agreement filed with the court, Marcum can charge up to $62,500 per month.
Marcum became Circuit City’s top executive in September 2008, less than two months before the retailer filed for bankruptcy. He replaced Philip J. Schoonover.
A hearing to approve the final liquidation plan was scheduled for last week but has been delayed until April 6. The hearing has been postponed about five times since it was originally scheduled for Nov. 23.
Once the plan is approved, a trust will be set up to liquidate any remaining assets. The money will go to pay fees and creditors.
The plan calls for unsecured creditors, such as suppliers, to get as much as 13.5 cents on each dollar owed. There are between $1.8 billion to $2 billion in unsecured claims.
Secured creditors, including banks that lent the chain money and secured it with collateral, are owed between $5 million and $20 million. That group of creditors would recover 100 percent of what they are owed.
Priority claim holders, who are owed as much as $95 million, also would get the full amount owed to them.
Shareholders would receive nothing.
Douglas M. Foley, an attorney with Richmond-based McGuireWoods, Circuit City’s Virginia attorney, said the hearing has been delayed so the company can work out tax issues from the sale of Circuit City’s InterTAN retail division in Canada.
Once those details are worked out, the hearing will happen, he said.
“Creditors have overwhelmingly voted for the plan, so we don’t see a problem” getting it approved by the bankruptcy judge, Foley said.
Of the creditors allowed to vote on the plan, about 84 percent voted to approve it, according to court papers.
Robert M. Lawless, a professor at the University of Illinois College of Law who specializes in bankruptcy law, said the delay is not unusual in a complex case like Circuit City’s.
“There is not much point in having the hearing before everything is ready,“ he said.
We are moving. Two positive moves back-to-back on relatively low volume. Has anyone heard anything?
If you compare it to the one released on January you will see that there is a clear improvement!
February 12, 2010...8-K...Cash on hand...$341,533.698... this is a lot of money. Does anyone know if most or all of creditors have been paid?
http://money.cnn.com/quote/sec/sec.filings.html?symb=CCTYQ&sid=1227&guid=7061376
Hi Jibber!
Any chance with this one?
Thanks!
Did you notice at the end of the 8-K, included in the "installment payments" list was $7,700,000 worth of Insurance policies, the premiums for which were paid at inception. They all cover the period from 12/1/08 to 12/1/14. This must be the payments for services paid years in advance that someone mentioned a few weeks ago.
I would think that these policies/services should be long cancelled by now. Shouldn't most of this money go in the pot?
I got in a couple of days ago. I picked up 119,044 at .167. I'm an official card carrying vulture now.
I read "Wamued..The Story" last night. A very enlightening and disturbing read. Incredibly audacious and arrogant; not to mention illegal behavior.
Comeuppance is long overdue.
I was in wamu before as well, if you check my previous posts I have averaged down and flipped like crazy to get back a portion of what I lost. I am in a position now to get back everything and then some if wamu wins in all areas. JP would have had wamu at 12 a share in the spring of that year but got very ahead of themselves now they will have to pay the piper and JD can not move to the next phase because this will ruin his chances of getting the seat at the treasury. something will happen sooner than later.
That is a very good analogy for WM. *lol*
I was pre-seizure and post-seizure also. Made back my initial 100% loss plus a 200% profit, but should have held until the $.40's. Dang, that would have been a nice little profit! I still think the stock will see $1+ but it might be a few years away. Litigation is never quick and easy.
-------
Looking forward to 1/28/10 here. My year of holding is now officially at an end.
Thanks, I'm in...or I will be as soon as I sell something to get my hands on some cash. I guess that I'm a vulture to be.
As a pre-seizure shareholder and post seizure vulture, as Starke would believe, I want my money back and I'll take a little revenge with my tea, please....I have my fingers crossed and hope it isnt business as usual... An appropriate analogy would be it's the 4th quarter with 1 second on the clock, ahead by 2 pts, with the opposing team at the 50 yard line needing a miracle to put them in field goal range...the question is which ref do they have in their pocket
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CCTYQ — Circuit City Stores, Inc. |
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Common Stock Par Value: 0.40 |
ONLINE STORE OPEN!!!~> http://www.thesource.ca
SHOP BY PHONE~>>> 1 (866) 454 4426
>>> http://investor.circuitcity.com <<<
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It was during Alan Wurtzel’s involvement with Circuit City that he began to realize the problems with the education system in the United States, and especially with the local education system. Wurtzel and his staff were frustrated with trying to hire young people who could “read, write, and interact” on a level that made them capable of working in Circuit City stores. A 1995 article in Buffalo News from Buffalo, New York, reported that according to Wurtzel, managers in the chain had to interview 20 young people before they found one with sufficient skills. Wurtzel felt that the education system was not training young people to keep up with the needs of the work force. In a 1991 article for the Virginia Forum, Wurtzel outlined a strategy for improving productivity and wages in Virginia. One of the problems that he identified was that “Virginia schools have not adequately prepared graduates, and certainly not dropouts, to hold the more challenging jobs of a fast-changing, high-productivity workplace.” Wurtzel emphasized the importance of education within his own company. New employees must train for at least two weeks before starting to work, and they continue to receive training as they continue to work in the company.
Wurtzel’s concern led him to become involved in numerous educational endeavors. Wurtzel has continued to lobby for reform in education and has been able to influence educational policies in Virginia as a member of the state board of education and the Commission on the Future of Public Education in Virginia. He emphasized the importance of connecting education to work, suggesting students who do not go to college should be offered programs in which they are trained and supported in a variety of ways, including through apprenticeships. His other suggestions have included the establishment of increasingly high, measurable standards for Virginia schools and punishing schools that do not reach the gradually phased-in standards. Both Alan and his father had always been involved in issues that affected local business and their communities.
The Wurtzels have helped revolutionize the consumer and appliance retail business. Pioneering the electronics superstore concept, Circuit City Stores, Inc. helped change the way consumers shop for televisions, stereos, and personal electronics equipment. By emphasizing customer service, Circuit City has been able to combine the concept of the electronics and appliance supermarket with the personal service of smaller stores. The formula of variety and low prices has proven to be an unbeatable combination that has fueled the company’s growth from a local Richmond, Virginia, appliance store to a nationwide chain. In such a volatile business as consumer electronics and appliances that Circuit City has persisted and flourished for half a century is testimony to the leadership and vision of the company’s founder Samuel S. Wurtzel and his son Alan L. Wurtzel.
(source)http://encyclopedia.jrank.org/articles/pages/6407/Wurtzel-Samuel-Wurtzel-Alan-L.html
1949 | Samuel S. Wurtzel opens first Wards Company retail store in Richmond, Va. Abraham L. Hecht joins company as partner. |
1959 | Wards operates four television and home appliance stores in Richmond, Va. Annual sales volume is approximately $1 million. |
1960 | Expands operations via licensed departments in mass merchandising discount stores around the country, including G.E.M., G.E.S. and G.E.X. stores. |
1961 | Makes first public offering with Stein Brothers & Boyce Company, Baltimore, Md. Offers 110,000 shares at $5.375 per share (split adjusted, 2 cents per share). |
1962 | Offers new service plan to customers. Wards loans customers a television if their set can not be repaired in the home. |
1963 | President John F. Kennedy appoints Sam Wurtzel to the U.S. Foreign Trade Mission to Switzerland and Austria. |
1964 | Opens fifth conventional television and appliance store in the Southside Plaza Shopping Center in Richmond, Va. |
1965 | Purchases the Richmond Carousel Corporation, a subsidiary of T.G. Stores, operating one mass merchandising discount store in Richmond, Va. The Carousel offers customers automotive and household supplies, appliances, children's toys, clothing and gasoline. Acquires Murmic of Delaware, Inc., operating six hardware-houseware departments in mass merchandising stores in the Southeast. |
1966 | Alan Wurtzel joins the company as vice president for legal affairs. Opens sixth conventional television and appliance store in the Walnut Mall Shopping Center in Petersburg, Va. Sales reach $23 million for the fiscal year. |
1968 | Moves from the over-the-counter market to the American Stock Exchange. Offers 1,700 shares at $19.75 per share (split adjusted, 55 cents per share). |
1969 | Acquires Custom Electronics, Inc., a retailer of audio and hi-fidelity equipment. Custom operates four conventional stores in the Washington, D.C., metropolitan area; nine licensed audio departments in mass merchandising stores from Albany, N.Y., to Mobile, Ala.; and the Dixie Hi-Fi mail-order business. Acquires The Mart, operating four television, appliance and furniture stores in Indianapolis. Acquires Certified TV, operating three stores in the Tidewater, Va., area. Begins operating licensed departments in Zodys Department Stores in Los Angeles. Opens second Carousel store in Richmond, Va. |
1970 | Acquires Woodville Appliances, Inc., operating five conventional television and appliance stores in Toledo, Ohio. Acquires Frank Dry Goods Company, operating one television, appliance and furniture store in Fort Wayne, Ind. Sam Wurtzel steps down as president, remains chairman of the board. Alan Wurtzel is named president. Abraham Hecht retires. |
1971 | Opens two specialty audio stores in Richmond, Va., under the name of Sight 'N Sound. |
1972 | Alan Wurtzel is named chief executive officer. Closes Franks of Fort Wayne and three Certified stores in Norfolk, Va. |
1973 | Opens five audio stores in Washington, D.C.; Richmond, Va.; Charlotte, N.C.; Costa Mesa, Calif.; and City of Commerce, Calif. |
1974 | Begins closing all licensed departments, except those in Zodys. Opens nine Dixie Hi-Fi discount audio stores. Closes two of the original Wards stores in Richmond and opens The Wards Loading Dock, a 40,000-square-foot, retail warehouse-showroom displaying a vast selection of audio, video and major appliance products. The Loading Dock is the precursor to today's Circuit City Superstore. |
1975 | Sells the four Woodville television and appliance stores in Toledo. Closes four of the five Mart stores in Indianapolis. Sells the two Carousel stores in Richmond, Va. |
1977 | Begins replacing the Dixie Hi-Fi and Custom Hi-Fi discount stores with new-concept "Circuit City" stores. The first six stores open in the Washington, D.C. market. The 6,000-square-foot to 7,000-square-foot Circuit City stores feature top brand names in audio and video products, an in-store service department, convenient pick-up area and knowledgeable sales personnel. |
1978 | Discontinues the Dixie mail-order business. Closes the four Richmond, Va., Sight 'N Sound stores. |
1979 | Opens a second Wards Loading Dock in Richmond, Va. |
1981 | Merges with Lafayette Radio Electronics Corporation, operating eight consumer electronics stores in metropolitan New York. Begins expanding the Loading Dock concept to new markets under the name Circuit City Superstores. First Superstores open in Raleigh, Greensboro, Durham and Winston-Salem, N.C. |
1982 | Richard L. Sharp joins Circuit City as executive vice president. Changes the name of the Richmond Loading Docks to Circuit City Superstores. |
1983 | Sales reach $246 million for the fiscal year. |
1984 | Company name changes to Circuit City Stores, Inc. Stock listed on the New York Stock Exchange. Sam Wurtzel steps down as chairman of the board, succeeded by Alan Wurtzel. Richard L. Sharp is named president. Begins replacing Circuit City stores with Circuit City Superstores. First replacements in Knoxville, Tenn.; Charleston, S.C.; and Hampton, Va. |
1985 | Abraham Hecht dies on July 5 at the age of 87. Sam Wurtzel dies on December 5 at the age of 78. |
1986 | Alan Wurtzel steps down as chief executive officer, remains chairman of the board. Richard L. Sharp adds the title of chief executive officer. All remaining non-Circuit City operations, including Lafayette and Zodys licensed departments, are closed and resources are put into building Circuit City Superstores. |
1987 | Sales hit the $1 billion mark for the fiscal year ending February 28, 1987. Acquires the custom electronics design and manufacturing company, Patapsco Design, Inc. of Maryland, to serve as an in-house engineering firm. |
1988 | Opens the first Impulse stores in Baltimore, Md., Richmond, Va., and McLean, Va. |
1989 | First personal computers hit Circuit City store shelves. |
1990 | Sam Wurtzel is inducted posthumously into Richmond Business Hall of Fame. Sales hit the $2 billion mark for the fiscal year ending February 28, 1990. Establishes First North American National Bank to operate Circuit City's private-label credit card program. |
1993 | Begins testing CarMax, an innovative retailing venture selling used vehicles. |
1994 | Richard L. Sharp adds the title of chairman of the Circuit City board of directors. |
1995 | All mall-based Impulse stores are renamed Circuit City Express. |
1996 | CarMax adds its first new-car franchise at the Norcross,. Ga., location and announces plans for national expansion of the CarMax concept. |
1997 | Shareholders approve the creation of two common stock series. The Company's existing common stock is subsequently redesignated as Circuit City Stores, Inc.-Circuit City Group Common Stock. In an initial public offering, the Company sells 21.86 million shares of Circuit City Stores, Inc.-CarMax Group Common Stock. The Circuit City Group Common Stock is intended to track the performance of the Circuit City store-related operations and a retained interest in the CarMax Group. The CarMax Group Common Stock is intended to track separately the performance of the CarMax operations. W. Alan McCollough is named president and chief operating officer of Circuit City. |
1999 | Circuit City Stores, Inc. launches its E-Superstore, www.circuitcity.com, offers customers a wide selection of competitively priced consumer electronics and personal computers. Annual sales for Circuit City store businesses exceed $10 billion. Annual sales for the CarMax superstores exceed $2 billion. |
2000 | W. Alan McCollough succeeds Richard L. Sharp as chief executive officer. Sharp remains chairman. Circuit City exits the appliance business. The space once occupied by appliances creates room for new products, including DVD movies, video games and digital cameras. |
2001 | With a $3 million donation, the Circuit City Foundation becomes the official sponsor of the Boys & Girls Clubs of America National Photography Contest, ImageMakers. Circuit City teams with Sony and CBS to introduce a public service campaign, Message From America. The program is designed to provide recorded video holiday greetings and messages of support for active duty U.S. military personnel. The service is free and open to the public. In a secondary offering of CarMax Group Common Stock, Circuit City sells 9.5 million CarMax Group shares. |
2002 | Circuit City becomes the first national consumer electronics retailer to offer consumers a co-branded Visa credit card, accepted not only at the more than 600 Circuit City Superstores nationwide and circuitcity.com, but also at the more than 21 million locations worldwide where Visa credit cards are accepted. W. Alan McCollough adds the title of chairman of the Circuit City board of directors. Circuit City Stores, Inc. completes the separation of CarMax. The separation eliminates the company's tracking stock structure and two common stock series - Circuit City Group Common Stock and CarMax Group Common Stock. Effective October 1, 2002, the Circuit City Group Common Stock is renamed Circuit City common stock and represents an ownership interest only in the Circuit City business, and CarMax, Inc. becomes an independent, separately traded public company. The video department in 301 stores is remodeled; lighting upgraded in 311 stores. |
2003 | Circuit City's Board of Directors authorized the repurchase of up to $200 million of the company's common stock. Based on the market value of the common stock at the time of the announcement, the authorization would allow Circuit City to repurchase up to approximately 13 percent of the 210.5 million shares outstanding. The company converts to a single hourly pay structure in all stores, eliminating commissioned sales. Circuit City completes the sale of its bankcard portfolio, which included Visa and MasterCard credit card receivables, to FleetBoston Financial. The company remodels 222 stores, fitting them with more flexible fixtures, which will facilitate the introduction of new products, as well as other assortment adjustments in its merchandise displays. Given the strong sales lift and internal rate of return seen with relocated stores after their first six months, Circuit City accelerates its relocation program. In fiscal 2004, Circuit City relocates 18 stores and opens eight new stores. |
2004 | Circuit City announces the closing of 19 underperforming Superstores. InterTAN, Inc., a leading consumer electronics retailer of both private-label and internationally branded products with headquarters in Barrie, Ontario, becomes a subsidiary of Circuit City following a tender offer in which Circuit City acquired the outstanding shares of InterTAN, Inc. InterTAN's Canadian operations become the company's international segment. Circuit City completes the sale of its private-label credit card operation, including both its private-label Circuit City credit card accounts and its co-branded Circuit City Plus Visa credit card accounts, to Bank One Corporation. Circuit City and Bank One enter into an ongoing arrangement under which Bank One will offer private-label and co-branded credit cards to both new and existing customers. (Bank One later merged with JPMorgan Chase) The company's Board of Directors authorizes a $200 million increase in the company's stock repurchase authorization, raising the total repurchase capacity to $400 million. Circuit City and IBM announce the launch of a technology transformation, designed to update the company's point-of-sale systems and other in-store technology. Circuit City and Verizon Wireless expand relationship and launch new store-within-a-store concept, including the same features available in a Verizon Wireless store. Philip J. Schoonover is named executive vice president and chief merchandising officer. Schoonover joined the company with more than 20 years of experience in the consumer electronics industry, including time spent at TOPS Appliance City, Sony Corporation of America and Best Buy Co., Inc. Circuit City and Chase launch Circuit City Rewards Visa credit card, giving customers an opportunity to earn rewards towards Circuit City purchases. |
2005 | Philip J. Schoonover adds the title of president, with W. Alan McCollough continuing to serve as chairman and chief executive officer. Circuit City announces the closing of 19 underperforming Superstores. The company's Board of Directors receives and rejects acquisition proposal of $17.00 in cash per share from Highfields Capital Management. Circuit City's Board of Directors authorizes a $400 million increase in the company's stock repurchase authorization, raising the total repurchase capacity to $800 million. International segment rebrands more than 900 stores in Canada to THE SOURCE BY CIRCUIT CITY. Circuit City adopts majority vote standard for director elections. |
2006 | W. Alan McCollough retires as chief executive officer. Philip J. Schoonover named chief executive officer. Philip J. Schoonover is elected chairman of the board of directors, succeeding W. Alan McCollough, who retired following the annual meeting of shareholders. The company's Board of Directors authorizes a $400 million increase in the company's stock repurchase authorization, raising the total repurchase capacity to $1.2 billion. Circuit City launches the firedogSM services brand in October, initially offering PC services and home theater installation. |
2007 | Circuit City announces plans to explore strategic alternatives for InterTAN, Inc. In the company's domestic segment Superstores, a new store operating platform is implemented, including a streamlined store management model, updated store operating procedures and a new store staffing model. Circuit City launches a new store prototype, the cityTM, that delivers a differentiated and improved customer experience. |
2008 | The company's board of directors authorizes the exploration of strategic alternatives to enhance shareholder value. Circuit City and Wattles Capital Management, LLC (WCM) reached an agreement to avoid a proxy contest regarding shareholder proposals submitted by WCM. Three of WCM's director nominees are elected to the board of directors. James A. Marcum named vice chairman and acting president and chief executive officer and Allen B. King elected chairman of the board of directors, succeeding Philip J. Schoonover who previously served as chairman, president and chief executive officer. Circuit City files a voluntary petition for reorganization relief under Chapter 11 of the United States Bankruptcy Code and under the Companies' Creditors Arrangement Act in Canada. The company plans to continue operating the business without interruption as management focuses on developing and executing a comprehensive restructuring plan. NYSE suspends the company's common stock. Shares trade over the counter and are quoted under the ticker symbol CCTYQ. |
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***Circuit City Stores, Inc. to Reorganize Under Chapter 11***
- Company Intends to Build on Recent Efforts to Streamline the Company and Create a Stronger, More Competitive Business -
RICHMOND, Va., Nov. 10 /PRNewswire-FirstCall/ -- Circuit City Stores, Inc. (NYSE: CC) today announced that it has filed a voluntary petition for reorganization relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Eastern District of Virginia ("Bankruptcy Court") in Richmond, Va. The company plans to continue operating the business without interruption as management focuses on developing and executing a comprehensive corporate restructuring plan. Circuit City's Canadian operations also will be seeking protection under the Companies' Creditors Arrangement Act in Canada ("CCAA").
In conjunction with the filing, Circuit City is seeking customary authority from the Bankruptcy Court that will enable it to continue operating its business and serving its customers in the ordinary course. The requested approvals include requests for the authority to make wage and salary payments and continue various benefits for employees as well as honor customer programs such as returns, exchanges and gift cards. In addition, Circuit City has negotiated a commitment for a $1.1 billion debtor-in-possession (DIP) revolving credit facility to supplement its working capital. The DIP facility replaces the company's $1.3 billion asset-based credit facility and is being provided by the same lenders. The facility provides additional immediate liquidity while the company works to reorganize the business and will permit the company to pay vendors and other business partners for goods and services received after the filing.
Circuit City recently announced that it was taking certain actions to address the company's financial condition and deteriorating liquidity position. Despite aggressive efforts to secure vendor support, vendor concerns about the company's liquidity and ability to pay for its purchases in this difficult economic climate have escalated considerably since the company provided a liquidity update on November 3, 2008, further impairing the company's ability to conduct business and provide service to its customers. Faced with the need to secure ongoing vendor support and to ensure adequate merchandise flow to stores during the important holiday season, the company has determined that it would be in the best interest of its stakeholders to file for reorganization relief under Chapter 11. Operating under the protection of Chapter 11 will provide the company's vendors with assurances that they will be paid for merchandise the company receives post-filing so the company can be sufficiently stocked for the holiday selling season. Further, the company intends to create a restructuring plan that should allow Circuit City to emerge as a stronger business with an improved national distribution channel for its vendors and a more compelling offering for its customers.
The company recognizes that, to achieve these objectives, there is a critical need to create a more efficient chain with a streamlined cost structure. As previously announced, the company is in the process of closing 155 domestic segment stores. This week, the company took action to realign its regional and district support structure commensurate with the smaller store base, which will include approximately 566 stores when the domestic segment store closings are completed. As a further cost-saving measure, the company reduced its corporate headquarters workforce on November 7, 2008. These corporate, regional and district support reductions totaled approximately 700 positions and are in addition to the reductions resulting from the store closings. The store closings and support workforce reductions will result in a combined domestic workforce and store base reduction of approximately 20 percent.
Under the protection of Chapter 11, the company plans to build on these recent restructuring initiatives. Through the additional flexibility that the bankruptcy process provides the company to restructure its operations, the company will continue its real estate rationalization by taking immediate steps to reject the leases at its previously closed locations. Further, as part of its restructuring efforts, the company will continue to assess the productivity of all assets, review additional cost-cutting initiatives and explore strategic alternatives to maximize the value of the business.
James A. Marcum, vice chairman and acting president and chief executive officer of Circuit City Stores, Inc., said, "We recently have taken intensive measures to overcome our deteriorating liquidity position. The decision to restructure the business through a Chapter 11 filing should provide us with the opportunity to strengthen our balance sheet, create a more efficient expense structure and ultimately position the company to compete more effectively. In the meantime, our stores remain fully operational, and our associates are focused on consistent and successful execution this holiday season and beyond.
"We appreciate the support we have received from our lenders in the midst of such a tight credit market. With this support, we believe we have the opportunity to leverage our market position and the strength of our brand to restore Circuit City to solid financial footing," continued Marcum.
"We understand how difficult the recent announcements have been on everyone at the company, and we recognize the changes personally affect many people. Further, we know there is never a good time for individuals to be impacted by decisions like these, and we deeply regret the effect this has on our associates. I want to thank them for their continued loyalty and dedicated effort as we go forward with the belief that implementing long-term and lasting change to our business will come by satisfying our customers, one at a time," concluded Marcum.
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