GENERAL QUESTIONS: What's going on at Circuit City?
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.
We had hoped to be able to emerge from Chapter 11 Bankruptcy protection as a stronger, more competitive company and we made significant progress during the reorganization to improve our business. Unfortunately, the economic climate is so poor that we have no choice other than liquidation.
Liquidators will start arriving in our 567 stores across the U.S. over the weekend, and closing sales will start as early as Saturday, January 17. Closing sales will run as long as it takes to sell existing inventory, but are expected to wrap up by the end of March. When the liquidation sales are completed, the stores will be closed.
At the company's corporate offices in Richmond, Va., a small staff will remain on duty during the completion of the liquidation process; most associates will be relieved of their duties immediately.
Consistent with federal labor laws, Circuit City associates are receiving 60-days notice of the termination of their employment. Those who stay on to help with the liquidation, of course, will receive pay and benefits. Those who are dismissed earlier will be receiving pay and benefits for the 60-day period beginning January 16, 2009.
Associates at our company headquarters will be asked to come back on Monday, January 19, to find out more about their status and to retrieve their personal belongings. Are you also shutting down your operations in Canada?
No, our Canadian operations will continue. They are not affected by the liquidation of Circuit City's U.S. operations. The Canadian operations employ approximately 3,000 associates. How many people are losing their jobs as a result of this action?
Circuit City employs approximately 34,000 associates in the U.S. Can you provide some background on Circuit City?
Founded in 1949 as the Wards Company, Circuit City is headquartered in Richmond, Va. At the time of the liquidation announcement (January 16, 2009), the company operated 567 stores in 153 media markets in the U.S. and approximately 765 retail stores and dealer outlets in Canada.
For a timeline history of the company, go to http://investor.circuitcity.com
, and click on Company Information. What happens to the company's stock?
The company does not anticipate any value will remain from the bankruptcy estate for the holders of the company's common equity, although this will be determined in the continuing bankruptcy proceedings. CUSTOMER QUESTIONS: Will Circuit City stores and your Web site continue to accept Circuit City gift cards?
Yes, customers holding Circuit City gift cards may redeem them at full value at our stores during the liquidation sales. Once the stores are closed and the company is out of business, the gift cards will have no value. Are Circuit City's extended warranties affected by the liquidation?
No. Circuit City Advantage Protection Plans® (extended warranties) have been backed by third-party independent companies for more than 15 years and as a result, are not impacted by Circuit City's closing.
Currently, all Circuit City Advantage Protection Plans are fully backed by the Assurant Solutions companies. Assurant Solutions operates as Federal Warranty Service Corporation, Sureway, Inc., and United Service Protection, Inc. Assurant Solutions is part of Assurant, Inc. (NYSE: AIZ), and its extended service contacts are backed by an Assurant insurance subsidiary rated A "Excellent" by A.M. Best Co. When will Circuit City's Web site, www.circuitcity.com, go off line?
Circuit City's Web site and call center will continue to operate through the weekend of January 17-18, 2009. When will the liquidation sales begin?
Liquidation sales begin as early as Saturday, January 17, 2009, and will last as long as it takes to sell through the merchandise at each of the stores. We expect the sales to wrap up by the end of March 2009. How much will merchandise be marked down, and can customers negotiate prices for the merchandise?
There will be clearance pricing, but specific discounts are not being announced. All sale prices are at the discretion of the liquidator. Prices are non-negotiable and all adjustments must be approved by the liquidator's on-site managers. What payment types will be accepted at the liquidation stores?
Stores in liquidation will accept cash, Circuit City gift cards and most credit cards. Personal checks will not be accepted. All sales are final. Will Circuit City's price matching policy or the One Price PromiseSM apply during the liquidation sale?
Because the liquidation company is in charge of the sales at the closing stores, their policies are in force. So, One Price Promise does not apply during liquidation events, nor does the company's Unbeatable Price Guarantee. All sales are final. What about returns and refunds?
Customers can return products they purchased prior to January 16 for a 14-day period for exchange or refunds. All other terms of return policy are in force.
When closing sales begin, on or around January 17, 2009, all sales will be final. Will customers be able to buy products online at circuitcity.com and pick up purchases in the liquidation stores?
No. SERVICES QUESTIONS: Will delivery service be available for products purchased from liquidation stores?
No. Will Circuit City offer home theater installations during the closing sale?
Yes. Will Circuit City offer PC services and repairs at liquidation stores during the closing sale?
Services already underway at the liquidation stores will be completed promptly, but no additional jobs will be accepted at these stores. Will car electronics installations be available at liquidation stores during the closing sale?
No new car installations will be offered. Will Circuit City's extended warranties still be available on products purchased from liquidation stores?
Yes, we're making no changes to our Circuit City Advantage Protection Plans®. Coverage is national and purchases will still be protected just as they always were.
Circuit City Advantage Protection Plans® have been backed by third-party independent companies for more than 15 years and as a result, are not impacted by Circuit City's bankruptcy or liquidation.
Currently, all Circuit City Advantage Protection Plans are fully backed by the Assurant Solutions companies. Assurant Solutions operates as Federal Warranty Service Corporation, Sureway, Inc., and United Service Protection, Inc. Assurant Solutions is part of Assurant, Inc. (NYSE: AIZ), and its extended service contacts are backed by an Assurant insurance subsidiary rated A "Excellent" by A.M. Best Co. What if a customer purchased products at one of the closing stores and the product needs service?
For products covered under the Manufacturer's Warranty, customers should call the manufacturer.
For products covered under Circuit City Advantage®
, guests can call the toll-free number that is printed on the bottom of the product receipt. Is there a phone number customers can call if they have additional questions?
Yes, the toll free number is 1 800 THE CITY (843 2489)