With the currently less-than-stellar economy, Circuit City has finally called it quits. They had filed for bankruptcy protection back in November, but now have hired liquidators to sell off all their remaining merchandise. They will close the rest of their stores, leaving over 30,000 people jobless.
A few things to remember when going to closing businesses:
- It’s a good idea to use up any remaining gift card balances before the store closes.
- Be aware of stores jacking up the prices for the sale. Even though the sign says 50% off, it doesn’t mean that you’re getting that good of a deal. Do your research to make sure that that is the best price around before you make a purchase.
- Most stores have an “All sales final” sign posted, so make sure you really want your purchase.
- Be careful about purchasing big ticket items, such as televisions and computers. Warranties may not be available, so if something breaks down, you could be out of luck. Ask the company/store about warranty information to be sure – a manufacturers warranty may be available on the item.
- A word about extended warranties from the BBB: The validity of any outstanding warranties varies for each bankruptcy. If a retailer goes out of business, the consumer may be able to rely on the manufacturer’s warranty. If a manufacturer goes out of business, the consumer may be able to rely on any warranties provided by the retailer. Many extended warranties and service plans are provided and administered by third parties and are typically not affected by a retailer or manufacturer going bust.
Linens -n- Things and The Sharper Image have also filed for bankruptcy. In the next year up to 25% of chain stores could go under, meaning up to 17,000 stores could close! Those who have gift cards and bridal/baby registries beware – use your gift card and make a copy of your registry.
On the news, the following stores were listed as a risk:
- William-Sonoma
- Saks
- Talbots
- Rte-Aid
- Eddie Bauer
- Pier 1
On a good note, you can get good deals at store closings. Personally, I’ve gotten a leather coat, wedding supplies (it was actually cheaper to buy than rent), Christmas and birthday gifts. Just keep your eyes open and your wallet grounded!
For more information about Circuit City going under, visit Ben Patterson’s blog at Yahoo Tech.
[...] a follow-up to last Friday’s article, Beware of Bankrupting Businesses, I’m posting a video about liquidators. This is a clip from ABC’s Good Morning [...]
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