Circuit City

About Circuit City

Circuit City filed for Chapter 11 bankruptcy on November 10, 2008, with 3.8 billion in debt. Circuit City was once the largest consumer electronics retailer in the US, with over 1,500 stores. The company fired 3,400 of its highest paid and most experienced sales associates in 2007 to cut costs. This decision damaged customer service and drove customers to Best Buy. Circuit City also failed to develop a strong online presence. The recession of 2008 reduced consumer spending on electronics. Circuit City liquidated all stores in March 2009, eliminating 34,000 jobs. The Circuit City bankruptcy was the largest retail failure of the Great Recession. The brand was later revived as an online retailer but without physical stores.