Circuit City to close[SIZE=-1]If you have a gift card, product return, warranty claim, or any other business with Circuit City, take care of it as soon as possible. The nation?s second largest consumer electronics retailer, which filed for bankruptcy protection in November, announced Friday that it is going out of business.
In a statement on its Web site, the retailer said that liquidation sales at its 567 U.S. stores will begin as early as Saturday and continue as long as there is merchandise. The company expects sales to be completed by March. The retailer said its Canadian operations would continue. It has 765 retail stores and dealer outlets in Canada.
The chain, which employs 34,000 people in the U.S., is the latest retailer casualty of the economic recession. Other major retailer failures include Linen ?n Things and Sharper Image.
Following completion of the bankruptcy, the company said, it does not expect there to be any remaining value for its common stock holders.
The Virginia-based retailer, which was founded in 1949, said it would continue to accept its gift cards until the stores are closed, after which the cards will have no value. The liquidation sales also will accept cash and most major credit cards, but not personal checks. All sales will be final.
Among other details:
- The chain?s Circuit City Advantage Protection Plans, which are backed by third-party companies, will continue to be honored.
- Items purchased before Jan. 16 can be returned or exchanged within 14 days.
- Computer service and repairs already underway will be completed, but no new repairs or service requests will be accepted.
- The chain?s price matching policy and Unbeatable Price Guarantee are no longer being honored.
- Delivery will not be available for products purchased from the liquidation sales.
- Home theater installation will continue to be provided, but installation of car electronics will not.
Act quickly to use any remaining gift cards or merchandise credits you have, since the liquidation will reduce store inventories quickly, leaving few or no product choices for those who delay.
If you?re interested in shopping at a Circuit City liquidation sale, here are some tips:
- Don?t assume it?s a deal. Compare prices with other retailers, both locally and online, before you buy. Prices at liquidation sales are not always the lowest you can find, especially at the beginning, our research has found.
- Dicker with competitors.* Find out whether a local or online retailer will match or come close to the price you find at a liquidation sale. It may be worth paying a little more to buy at a retailer that plans on staying in business.
- All sales are final. If there?s a problem with the merchandise, you likely won?t be able to rely on the traditional legal obligations retailers have to provide you with ?merchantable? products. If you do find a problem, try returning the product to the retailer anyway. In the past, one liquidator told us that he sometimes accepts returns where there is an obvious problem, despite the advertised no-return policy.
- Verify before you buy. Check the product thoroughly. Open the box. Look for damage. Verify the presence of all parts, accessories, instructions, warranty information, and other items that should be included. If possible, plug the product in and make sure it works.
- Use a credit card. That will give you an opportunity to contest the charge if the item is broken, there are missing components, or you encounter other problems.
- Verify manufacturer warranty coverage. Make sure the product is covered by a manufacturer warranty. It may be your only recourse if there?s a problem.
- Don?t rely on advice from salespeople. Going-out-of-business sales often supplement or replace the retailer?s employees with the liquidator?s staff, who might not have the same expertise at the retailer?s sales staff.
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