Circuit City Announces It's Going Out Of Business

Circuit City, the nation's second largest electronics retailer announced on Friday, January 16, 2009 that it will be closing all of its 567 stores. Circuit City recently filed for bankruptcy and was looking to sell the company or try to refinance its debt. According to media reports, negotiations went south with a potential buyer, forcing the company to close its doors.

Circuit City's web site wasn't available for shopping today, instead there was a full page explaining the company's current circumstances.

"Circuit City would like to thank all of the customers who have shopped with us over the past 60 years. Unfortunately, we announced on January 16, 2009, that we are going out of business."

It goes on to say:

"Due to challenges to our business and the continued bleak economic environment, Circuit City is going out of business and the company's assets will be liquidated to pay off creditors."
"The process was extremely difficult and we were left with no other choice but to liquidate. Circuit City had a proud heritage of serving the public for 60 years and we deeply regret the impact this decision will have on our associates, our customers and the communities where we have operated stores and other facilities."

It's is very sad to hear that more than 30,000 people are about to lose their jobs. Times are hard, harder than they have ever been during my lifetime. Again, I fault the company's management for part of its downfall. Circuit City in my opinion did not make customer service and satisfaction a top priority. That may have been their biggest mistake, allowing stores like Best Buy and Wal-Mart to sneak up and steal not only their customers but the market itself.

Happy New Year

Happy New Year

It's 2009

Out with the old and in with the new as they say. As we say goodbye to 2008, I look back to see what made it the worst year in recent memory and also why it’s been the most interesting year.

President-Elect Barack Obama
Senator Barack Obama made history by being the first black candidate to win a major party nomination. He went on to become the nation's first black President. He also set records in fundraising during his presidential campaign. President-Elect Obama will be sworn into office on January 20, 2009.

Sen. Hillary Clinton
Sen. Clinton's quest to become the nation's first female President came to an end when she failed to win enough votes to secure her party's nomination. She then shifted her support for Sen. Obama. After Obama's win over John McCain, she was rewarded for her efforts; she is slated to become the next U.S. Secretary of State.

Caroline Kennedy
Caroline Kennedy, the only surviving child of President John F. Kennedy and Jacqueline Onassis expressed her interest in the senate seat that will be left vacant when Sen. Hilary Clinton is confirmed as Secretary Of State. First the media dogged Ms. Kennedy accusing her of using her family's name to bully New York's Governor to appoint her. Second, they have questioned her credentials and as of late her articulation is under attack.

One only has to look beyond Caroline Kennedy's name to see why she would make such a great senator. One, she really cares about people. She has worked for years to raise money for New York City's public schools. She is also an accomplished lawyer. Caroline Kennedy sits on the boards of several charitable organizations. She also credited with lobbying and helping to successfully campaign for Barack Obama.

Financial Meltdown
With the new year, say goodbye to some companies that were once staples in the financial world. Bear Stearns closes its doors. Bear Stearns was once the one of the world's largest investment bank and brokerage firms collapsed because of sub-prime mortgages.

Washington Mutual, the nation's largest savings and loan and Wachovia both two of more than a dozen of banks that failed in 2008. WaMu was bought by JP Morgan Chase. Wachovia was purchased by Wells Fargo, and will over the next three years assume the Wells Fargo brand.

The big dips in the stock markets cause many Americans investing their pensions to lose a substantial amount of money. Although many experts predict that the market will correct itself and that people will get back most of the money they lost, at the moment that path looks far away.

2008 saw the largest increase in gas prices. At one point each week brought new record in gas prices. The rise in prices started with the damage Hurricane Katrina made when it hit the gulf coast. After the disaster oil speculators drove the prices even higher, all to make a profit for themselves.

Increased gas prices ensured prices of almost all other consumer goods would also rise, especially food. 2008 saw the largest and fastest increase in food prices in history. In an economy where the bottom has fallen out, people where making hard choices on weather to buy food, medicine or gas to get to work. It's probably the top thing people will not miss about 2008.

Home foreclosures skyrocketed in 2008. As most sub-prime loans interest rates adjusted, most homeowners could no longer make their mortgage payments leading to beginning of the current financial crisis.

Caylee Anthony
Caylee Anthony was missing for more than a month before her mother Casey Anthony reported her missing in July of 2008 at the prompting of her parents. Police investigating the case arrested Casey Anthony on suspicion of murder, neglect and giving false statements. Casey Anthony maintained her innocence and said that the child was alive and out there. Eventually Caylee Anthony's body was found near her Florida home.

Store Closings
The economy's slide south proved to be too much for some major retailers. Circuit City filed for bankruptcy and is closing over 100 of its stores nationwide. KB Toys filed bankruptcy for a second time and closed its doors at many of its mall locations. The country's financial woes are also pushing a lot of other stores out of business like Mervyns Department Stores, The Sharper Image, Linens 'n Things, Value City, Bill Heard Automotive, The Bombay Company, Steak and Ale, Shoe Pavilion, and Levitz Furniture.

Michael Vick
What does a man do when he has fame and fortune? He runs a dog fighting ring of course. Michael Vick shocked many of his fans when it was discovered he funded an illegal dog fighting ring on his property. His arrest led to him being let go from the Atlanta Falcons and fired from endorsements. He is currently serving time in federal prison.

Writer's Strike
The writer's started in November of 2007 and ended in February of 2008. The strike pretty much torpedoed the rest of the television season. Some shows did not return to air, to finish out the season, while others were canceled without any chance of redemption. The strike also had a lasting financial effect on Hollywood. Because production on shows stopped, production companies were forced to lay off thousands of crew members. Shows that were slated as mid-season replacements never aired. Awards shows were scaled back or canceled. After the strike was over it was determined that most people found alternate forms of entertainment. Some people apparently did not come back to the TV, its been reported that viewership dropped nearly 7%.

Gov. Rod Blagojvich
In December of 2008 Gov. Blagojevich was arrested by the FBI with among other things solicitation of bribery. The government claims that they have the Illinois Governor on tape attempting to sell Barack Obama’s senate seat to the highest bidder. So far none of the tapes have been released. From the very beginning members of both parties have called to have the Governor removed from office. It sounds easier than it actually is. The Governor has refused to resign, so state leaders are looking into impeachment. The state’s Attorney General has said that she would try to have him declared unfit to hold office. It’s a move that may not be constitutionally sound. Democrats have warned the Governor not to try to appoint anyone to President-Elect Obama vacant seat. But as it turns out, he defied them and appointed Roland Burris, former Illinois Comptroller and State Attorney General.

Markets Rebound, Cash or Credit

After one of the worst week in Wall Street history, the Dow rebounded with a gain of more than 936 points. We are finally getting some good news from Wall Street. The rebound is believed to be a reaction to news that several central banks from around the world including the Federal Reserve will be giving banks that are in turmoil short term funding. The thinking is that by infusing the banks with cash, it will help thaw the frozen credit markets.

Speaking of credit, it has become very difficult if not impossible for people to obtain mortgages or auto financing during this financial crisis. Banks are very skittish at the moment. You know its bad when banks are afraid of lending to other banks. I’m sure everyone is watching and waiting to see if the government’s $700 billion bailout plan will make a difference.

I remember when I was a kid, not many families had credit cards. Credit was for the rich. Back in the day, we use to have a cash market. If you needed a new refrigerator or a new mattress you paid in cash. Credit wasn’t so easy to get back in those days especially for minorities. If you didn’t have the money for something you needed and didn’t have credit, there was this great program that was very popular called “layaway”. With layaway, customers could pick the items they wanted, have a store put it aside with a deposit, usually anywhere from 10-25%. The customer would then be able to make small scheduled payments on the item until it was paid for and then could take possession on it. I can remember lots of stores that had layaway, Lionel Play World, K-Mart, Wal-Mart, J.C. Penny and Sears. Now, you would be hard pressed to find a store that has a layaway plan.

In today’s troubled times, the middle class needs layaway now, more than ever. Perhaps we are going to learn a lesson from the financial crisis and move back to a predominantly cash market. We will buy only what we can afford. We will buy the cars that match our bank accounts and not our personalities. We will no longer be the fast food society of “I want what I want, When I want It.” I think if anything should be learned from this is we need to live our wage and not above it.