Why is it so hard for everyone discussing Circuit City's Chapter 11 filing and New York Stock Exchange stock suspension to tell the world what really happened with this company?
No, Circuit City isn't dying because of the credit crunch, and there's no way we can blame its demise on the preferential treatment competitors like Best Buy are receiving. And we certainly can't blame it on the online-retail industry.
For some reason, every story I see written about the topic gives the company line--Circuit City is forced to file for Chapter 11 protection because of the "tight credit market"--and yet no one tells it like it really is: Circuit City is dying today, and will be a mere memory in just a few short months, because the company's executives ran the business into the ground.
Some believe that with the online onslaught being what it is, there's really only room for one major electronics retailer in the brick-and-mortar space. Anyone who believes that has no grip on reality.
There is room for multiple big-box electronics retailers. If Circuit City executives established a business model that competed with Best Buy's instead of trying to copy it, none of this would have ever happened, and we would be wondering which retailer will have the better holiday shopping season.
Instead, we're digging Circuit City's hole.… Read more