Is the tech store which closed most of its stores back in 2008-2009 back? You guys probably herd of a tech store Circuit City somewhere. This was the 2nd largest tech store after Best Buy back in 2008 before its closing. Keep reading to find out more on what happened and what will be happening.
2008 – 2009
On November of 2008 Circuit City anounced that it will close 155 stores out of 550 stores and lay off 17% of its employees. 6 days later Circuit City filed a bankruptcy protection under Chapter 11 of the US Bankruptcy Code. This caused Circuit City’s stock to under $1 per share and was REMOVED from the listing on the New York Stock Exchange. Further investigation showed that Circuit City had assets of $3.4 billion and debt of $2.32 billion to HP($119 Million) , Samsung($116 Million) and other companies. In January of 2009 Circuit City converted its Chapter 11 bankruptcy to Chapter 7 bankruptcy and started to close all stores. The company website said “Circuit City would like to thank the millions of customers who have shopped with us during the past 60 years. Unfortunately, we announced on January 19, 2009, that we are going out of business.” on that day of January 19, 2009. Few months later in April of 2009 Systemax, Inc signed an agreement for $6.5 million, which was an initial offer for the bankrupt Circuit City’s assets. A month later Circuit City sold their trademark, brand name, website and everything to Systemax for $14 Million. Systemax relaunched the Circuit City website after that. A few years later in November 2012 Systemax ended the 63 years of the Circuit City brand name.
2015 – 2016
In late 2015 Ronny Shmoel bought the brand, domains, and trademarks of Circuit City from Systemax and founded Circuit City Corporation Inc. Few days ago they announced that Circuit City Corporation Inc will open 50 to 100 stores and additional 100 to 200 locations by 2017. The stores will be approx. 2,000 to 4,000 square feet big and its first store will open in June in the Dallas-Fort Worth Metroplex with the relaunch of circuitcity.com website.
Overall I am super surprised to hear about Circuit City in the news. I have always thought that Circuit City was long gone forever and now its back from the dead. I am also excited that Circuit City will open and want to see how it has changed in the 8 to 7 years of disappearance. I am hoping that a store will open near me soon.