Circuit City has begun liquidation sales at its remaining 567 U.S. stores, meaning the company will not be coming out of bankruptcy as hoped.
Last month, the giant retailer, which employs over 30,000 US workers, filed for Chapter 11 bankruptcy protection after suppliers cut off most credit.
The company estimated its remaining inventory at $1.3 billion and said creditors will receive 70.5 percent of all revenue from the liquidation. Stockholders will get nothing.
The liquidation sales will end on March 31st when the company completely goes out of business.
“Regrettably for the more than 30,000 employees of Circuit City and our loyal customers, we were unable to reach an agreement with our creditors and lenders,” James A. Marcum, the current CEO added.
Result for: loyal customers
In an effort to give back to loyal customers, Apple has said that they will be offering credits or refunds to those with Season Passes to the iTunes Store that were affected by the Writer’s Guild of America strike.
Buyers of a season pass get access to a full season of a TV show at a discounted price but because of the strike many shows did not see a full season of episodes. Some shows were even canceled or stopped indefinitely.
As a way to compensate, the company will deliver all subsequent 2007-2008 season episodes when it is possible and issue prorated refunds for shows whose seasons were permanently truncated. Additionally, all season pass holders will be “given two free video credits, good for two TV episodes, music videos and/or short films on the iTunes Store.”
