Circuit City employee report: Inventory woes

by Matt Burns on November 13, 2008

Circuit City seems to be having big inventory issues right now. We know that the retailer is restructuring under Chapter 11 and recently received a $1 billion loan from BoA, but inventory issues are rampant according to a Circuit City employee email. This employee’s store is one of the largest in his state and that store still hasn’t received new CD and DVD releases this week. The latest inventory truck just dropped off a few HDTVs and nothing else; no computers, cameras, or car electronics and according to the computer system, none are on the way. Hopefully the $1 billion dollar loan will purchase inventory otherwise working at Circuit City this holiday season will be extra horrid.

Justin - November 13th, 2008 at 9:31 am GMT+5

First CompUSA and now CC. Hope this post will make BoA give a nudge to the CC management to speed up stockpiling.

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SZL900 - November 13th, 2008 at 10:47 am GMT+5

Our location was told that it was one of the best performing store in the company last week, YTD. As far as I know, we are still waiting for all new releases as well.

There are more and more red “out of stock” tags going up around or store.

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Roger Kaputnik - November 14th, 2008 at 4:35 pm GMT+5

CC has a problem they are facing now and I do not think if the Manufactures will not tolerate nor comply.
According to the bankruptcy papers. CC owes about $750 million to its vendors such as Samsung, HP, Sony, Mitsubhi, RCA etc. However, with the BofA loan totalling $1.1 Billion, absolutely none of this money will be used to payback these suppliers.
What company in its right mind would front more goods to CC without being paid for what they are currently owed? Answer, Only the stupid ones.
If I was a manufacture and CC owes me $80 million for the past purchases and they want me to supply them some more forget it! Pay me for what you owe me and then pay me in cash for what you want to order then we will do business.
I think at the end of the Christmas season and the Q4 report is release in January, CC will be closing by end of their fiscal year, March 31, 2009. Sorry to say it but the writing is on the wall.

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