January 16, 2009

Circuit City to axe 34,000 more jobs, close 567 remaining US stores

According to AP: “Circuit City became the largest retailer to fall victim to the expanding financial crisis Friday, announcing it will shut down its remaining 567 U.S. stores at the cost of 34,000 more jobs after failing to sell the business.”

“Unfortunately, there won’t be a Circuit City after today,” Circuit City lawyer Gregg Galardi said Friday, January 16, 2009.

“Wall Street analysts said in November that the prospects of long-term survival for the Circuit City were bleak. Months of declining sales during the recession sent the company over the edge, although its problems go back a decade, from buying cheap real estate leases in inferior locations to laying off its most experienced sales staff. The latter saved money but cost the company employee morale and countless customers.”

Update (1-16-2009): Circuit City estimated the value of its inventory at $1.2 billion to $1.3 billion, and creditors are guaranteed 70.5 percent. Stockholders will probably get nothing, Circuit City said in a statement, according to Bloomberg

November 21, 2008

Large-scale layoffs sting Bay Area companies

According to San Francisco Business Times: “With the pace of Bay Area layoffs increasing, particularly in the East Bay, workforce retraining efforts are also gathering steam.

Large-scale job cuts have accelerated with the closure of department store chain Mervyns’ Hayward corporate office and eight East Bay locations, and the acquisition of Longs Drug Stores Corp. by CVS Caremark Corp., with the loss of 800 Longs corporate jobs. This week, electronics retailer Circuit City Inc. said it would close 155 stores nationally, including six in the East Bay.

These are among the region’s biggest layoffs since last year, when job losses were focused on the home lending industry. Roy Bertuccelli, a program financial specialist at the Alameda County Workforce Investment Board in Hayward, said the last three weeks have been “extremely unusual. … All sectors of the economy are slowing down.”

Meanwhile, green industries, health care and biotech continue to hire. Bertuccelli is seeking to retrain workers to match up with continued demand from “sunrise” industries.”

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