japarker24 wrote:
SkipG wrote:
They recently closed the Best Buy here, that place was a joke! Surprised it lasted as long as it did.But isn't Best Buy the reason Circuit City went bankrupt?
Not really. Circuit City was somewhat of a local company in South East VA, they started and were headquartered in Richmond. Their corporate offices recruited heavily at my school and many that went through accounting with me either went there or their auditors. I even attended a few recruiting pitches with several professional orgs I was with.
Circuit City viewed their core competency in financing, not consumer electronic sales. They were the first electronic company to finance (according to them) and made most of their revenue from interest on sales. They then created a bank and then extended this competency into car loans, Car Max was owned by Circuit City, and a few other ventures. They then experimented in the failed idea of DivX as a DVD rental protocol that never took off, but perhaps inspired Netflix.
They lost a lot of money on Divx and it went defunct by 2001, that corresponded with their spinoff of CarMax. By then the lost focus on consumer sales and it became a drain against their banking line. So they sold that, and with the absence of the diverse revenue stream they just couldn't go on.
"In the world I see you are stalking elk through the damp canyon forests around the ruins of Rockefeller Center. You'll wear leather clothes that will last you the rest of your life. You'll climb the wrist-thick kudzu vines that wrap the Sears Towers. And when you look down, you'll see tiny figures pounding corn, laying stripes of venison on the empty car pool lane of some abandoned superhighway." T Durden