Last Updated January 30, 2009 4:00 p.m. ET
Please don’t be intimidated by the length of this document. It’s long because it needs to respond to many questions from Circuit City customers, associates, and others who need information about the company and its business as we move through the liquidation process.
We’ve done our best to lay out the information logically. Please take a few minutes to scan through it; we think it will answer the vast majority of your questions.
We also invite you to check back for updates because new information continues to surface as our circumstances evolve.
We’re responding to questions on the following subjects:
- Basic Questions – what’s happening at Circuit City
- Financial/Associate/Vendor Issues
- Liquidation Sales in Stores
- Gift Cards/Credit Cards/Rewards/Rebates
- Returns/Refunds/Exchanges
- Warranties/Repairs
Additional resources are posted at the following URL: http://investor.circuitcity.com. Click on “Breaking News” for documents.
BASIC 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.
- Liquidation managers began arriving in our 567 stores across the U.S. over the weekend of January 17-18 and closing sales were started 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 have been relieved of their duties.
- In some locations, a specific amount of notice regarding this change may be required by state or federal law. We informed all locations as soon as possible.
How many people are losing their jobs as a result of this action?
- Circuit City employs approximately 34,000 associates in the U.S.
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.
Will Circuit City’s Web site, www.circuitcity.com, continue to operate?
- Circuit City’s Web site and call center have been shut down, at least for the time being. Please feel free to check back from time to time for updates.
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.”
FINANCIAL/ASSOCIATE/VENDOR QUESTIONS:
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.
What if I believe Circuit City owes me money?
- On December 19, Circuit City’s agents mailed out Notice of Commencement of Chapter 11 Bankruptcy Cases, Notice of Deadline for Filing Proofs of Claim, and Proof of Claim Form(s). These Notices can be found at www.kccllc.net/circuitcity under the “Court Documents” link, dated 12/12/2008. A Proof of Claim form can be found at www.kccllc.net/circuitcity.
- The Notice and Proof of Claim Form provide you with the information you need to file a Proof of Claim relating to those monies, if necessary.
- Receiving the Notice does not necessarily mean that you have a claim or that you need to file a Proof of Claim.
- The Bar Date is the date set by the Bankruptcy Court by which a creditor (anyone owed money by Circuit City) must file a Proof of Claim against the company relating to the period before November 10, 2008. The Bar Date is January 30, 2009, 5:00 p.m. Pacific Time. For more information about how to meet this deadline, please follow the instructions in the Notice.
I am a former employee and need contact information for my retirement plan or other benefits. Whom do I contact?
- We are working on a detailed FAQ document for our former associates. When we have more information, we expect to post it at this link: http://investor.circuitcity.com/announcement.cfm and also via the Web site www.Linkedin.com under the group “Circuit City Associate News – Jobs & FAQs”. Please feel free to check back from time to time for updates.
- In the meantime, you may contact the Associate Service Center at 800-288-6353.
My firm is interested in acquiring or subleasing real estate occupied by Circuit City… whom should I contact?
- Please contact Jim Avallone of DJM Realty. He can be reached at 631-927-0024 or by email at: javallone@djmrealty.com.
My firm is interested in hiring Circuit City associates. Whom should I contact?
- Please send an email with details to hr.administration@circuitcity.com.
LIQUIDATION SALES IN STORES:
How can I find out which stores are open?
- You can find a link to “Store Closing List 1/16/09” by clicking on the “Breaking News” link at the following URL: http://investor.circuitcity.com
- Store location information is also available at 1 800 THE CITY(843 2489) (Option 6)
- These stores are currently open and operating liquidation sales.
What payment types will be accepted at the liquidation stores?
- Stores in liquidation will accept cash, Circuit City gift cards, Circuit City Rewards Certificates, and most credit cards. Personal checks will not be accepted. All sales are final. Circuit City-branded credit cards, including Circuit City branded Visa cards, will not be accepted in the liquidation stores.
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 and all sales are final. Prices are non-negotiable and all adjustments must be approved by the liquidator’s on-site managers.
Who are the liquidation firms that will handle the closure of Circuit City stores?
- The Bankruptcy Court confirmed a consortium of four companies to administer the liquidation of CC stores: Great American Group WF LLC, Hudson Capital Partners LLC, Capital Group LLC and Tiger Capital Group LLC.
- The liquidators will be in charge of pricing questions and marketing the liquidation sales.
So, the financing offers spelled out in Circuit City’s newspaper circulars on Sunday, January 18, 2009 will not be honored?
- That’s correct. Those ads were printed weeks before the Bankruptcy Court approved Circuit City’s liquidation on January 16 and were in the circulation pipeline before the hearing. The liquidation order supersedes any other business the company had in the works, including advertised promotions.
- Circuit City will cease marketing and advertising immediately. Any marketing for the liquidation sales will be the responsibility of the liquidators.
Will Circuit City’s price-matching policy or the One Price Promise(SM) 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.
Will delivery service be available for products purchased from liquidation stores?
- No.
Will Circuit City offer home theater installations during the closing sale?
- No.
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?
- In many cases, yes. But a number of our stores will not offer these services. Check with your local store to see if auto installations are available.
Will Circuit City stores continue to accept the government-issued coupons for digital TV converter boxes?
- Yes.
GIFT CARDS/CREDIT CARDS/REWARDS/REBATES:
Will Circuit City stores in liquidation 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.
How can I check the value of my Circuit City Gift Card?
- You can check the value of your gift card at any Circuit City store, or by calling the following number: 1-888-695-4880.
Do customers who hold Circuit City-branded CREDIT CARDS need to pay off their balances immediately? Can they just stop making payments now that Circuit City is in liquidation?
- Circuit City’s credit card program is administered by Chase and customers will continue their credit relationship and repayment of their obligations with Chase.
- Customers should continue to follow the current payment terms /APR that they’re currently operating under.
- Unfortunately, we will no longer be able to accept payments towards your Chase account balance in our stores.
Will Chase close-out or transfer accounts for Circuit City-branded credit
cards?
- This is a Chase decision since they own the credit card relationship with the customer. If there are modifications to the card type, then Chase would notify the card holder. Customers with a Circuit City Rewards Visa can still use their card at any company that honors VISA.
- No new Circuit City-branded credit cards will be issued and no new reward points will accrue from a Circuit City purchase.
Will Circuit City stores in liquidation stores accept Circuit City-branded credit cards for purchases? If not, why not?
- No, Circuit City-branded credit cards, including Circuit City branded Visa cards, will not be accepted in the liquidation stores because we are not offering promotional financing or rewards in the liquidation stores and we want to avoid any customer confusion.
Can I use my Circuit City Rewards Certificates?
- Yes. Circuit City Rewards Certificates will be accepted during the liquidation sales. Please see your monthly statement or read the back of your card for instructions on how to receive certificates. Take your Circuit City Rewards Certificate to your local store, and the points will be redeemed for credit toward a purchase.
Whom do I call if I have questions about the status of Circuit City Rebates?
- You can check the status of your Circuit City Rebate at the following Web site: https://www.ccityrebates.com
- Information about rebates can also be accessed at 1 800 THE CITY (843 2489) (option 5)
- Please note that manufacturers’ rebates are the responsibility of the various manufacturers.
What’s going on with the Circuit City Gamers Savings Club?
- The Gamers Savings Club program has been shut down due to the liquidation. Members are no longer able to receive discounts on video games and accessories in Circuit City Stores.
RETURNS/REFUNDS/EXHANGES:
What about returns, refunds and exchanges?
- No more product exchanges will be allowed.
- For purchases made during closing sales starting on January 17, 2009, all sales are final.
- We will continue to honor our extended holiday return policy. Purchases made between November 2, 2008 and December 24, 2008 can be returned for a refund through January 30, 2009.
- For products purchased between December 25, 2008 and January 16, 2009 Circuit City’s normal return policy applies, PROVIDED THAT all returns will be refunded and not exchanged, and must be completed by close of business January 30, 2009.
- For any refund, we need the original receipt or a record of the purchase in our system, and the product must be in its original condition, including the box, UPC bar code, packaging, and all accessories. Charges for installation and delivery services are non-refundable after the services have been performed.
WARRANTIES/REPAIRS:
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.
- Because they are backed by third-party company Circuit City Advantage Protection Plans WILL be available on products purchased during Circuit City’s liquidation sales (except in our three Puerto Rico locations).
- Assurant Solutions says it is not necessary for customers to call or email Assurant Solutions service centers to confirm the validity of their contracts.
- Carry-in service will no longer be available through Circuit City stores. Circuit City customers who subscribed to a plan that included carry-in service will be provided an alternative drop-off location for on-site service or shipping instructions to return items to an authorized service center.
What number do I call about my Circuit City Advantage Protection Plans (extended warranty)?
- Assurant Solutions says it is not necessary for customers to call or email Assurant Solutions service centers to confirm the validity of their contracts.
- For Circuit City Advantage Protection Plans purchased ON or AFTER December 1, 2006, please call the following number(s) to obtain service:
- Personal computers, laptops, printers, digital cameras and other computer-related equipment: 1.800.555.4615
- In Home Service for Televisions : 1.800.878.1167
- MP3 players, gaming systems, CD Players, camcorders, GPS, auto and home audio systems, and other consumer electronics items: 1.800.555.4615
- Appliances: 1.800.878.1167
- For Circuit City Advantage Protection Plans purchased BEFORE December 1, 2006, please call the following number(s) to obtain service:
- Personal computers, laptops, printers, digital cameras and other computer-related equipment: 1.800.555.4615
- In Home Service for Televisions: 1.800.286.0470
- CD Players, camcorders, GPS, auto and home audio systems, and other consumer electronics items : 1.800.286.0470
- Appliances: 1.800.286.0470
What do I do if I want to cancel the remainder of my Circuit City Advantage Protection Plan?
- You need to write a letter to the following address for a refund:
Assurant Solutions
ATTN: Circuit City Transfers
PO Box 105689
Atlanta, GA 30348-5689
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.
What about products that are currently in for repairs with Circuit City… what will happen to them?
- Every product WILL be returned to the customer. We are in the process of contacting customers to let them know when and how the products will be returned. This process will take a few weeks. We apologize for the inconvenience, and ask customers to be patient.
- Depending on the type of product, different repair processes are used. For example, some products are repaired and serviced by their original manufacturer. Others are repaired in service centers; others are repaired by store technicians.
- Our goal is to complete as many repairs as possible, but, unfortunately, our bankruptcy liquidation means that some products currently in our possession will be returned to customers un-repaired. In those cases, we will provide an explanation on how to get the product repaired.
- Customers covered by Circuit City Advantage Protection Plans can rest assured the terms and conditions of their plans WILL be fulfilled, but our liquidation may result in some additional delay. Again, we sincerely apologize for the inconvenience.
I have a product in for repairs at Circuit City… how can if found out about the status of the repair?
- If the repair is underway based on a warranty contract purchased before December 1, 2006, call the following number: 1.800.286.0470.
- If the repair is underway based on a warranty contract purchased ON or AFTER December 1, 2006, please call: 1.800.878.1167.
MORE QUESTIONS?:
- If you’re a customer and you still have questions, please send an email to: customer_care@circuitcity.com.
- If you’re with the news media, and you have questions, please send an email to: jim_babb@circuitcity.com.
