Blockbuster Looks At Circuit City's Books; Ditches Acquisition Offer

from the no-real-surprise dept

We were one of a very small number of people who actually saw some logic behind Blockbuster bidding for Circuit City -- though, it seemed unlikely that Blockbuster viewed the purchase in the same way we did. Most people assumed (probably correctly) that Blockbuster didn't really have much of a plan at all, other than to merge the two struggling companies and have an even bigger mess on their hands. Blockbuster has now withdrawn the offer to buy Circuit City, gamely claiming that it has to do with "market conditions" and a better understanding of just how awful Circuit City's books appear to be. That's press release talk. What's more likely is that Blockbuster realized that everyone was right: it would screw up the merger and make a bad situation worse.

Filed Under: mergers, retail
Companies: blockbuster, circuit city

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  1. identicon
    Tray, 2 Jul 2008 @ 6:33pm

    Corporate Culture = Failure

    It's NOT the stores that are causing problems - it's the mid & upper management who have absolutely no clue. I worked at a retail location in slidell, la for about 1 year in which time I saw some of the most ignorant and incompetent management. From the district manager, to the store & ops manager, to sales managers, they had no clue on how to handle employee morale, customer satisfaction, and general common sense on how to "just handle things". If there sacred circuit city manual didn't tell them what to do they would often be at a complete loss. The promotion structure is archaic at best - those with the most "time in" get promoted. Which clearly failed - as the store manager could barely iron his shirt, much less deal with customers problems - his attitude was simple that if you had a problem, it was YOUR problem, not ours. So its no surprise to see this news - its the result of poorly executed management decisions at all levels - thus poorly performing employees. I'm very happy I left as I now work as a GM for a mid-size business, if anything I learned what NOT to do as a manager.

    I sort of predict both CC and BB "consolidating", i.e closing, stores before to long. I know people like to "touch, feel, and talk" to real human beings - but why would I buy my 60' Sony Wega from CC for 4 or 5 grand, when I can get the same one, same warranty, etc. from a authorized dealer online for half the price ... I won't! Most informed consumers don't shop in these stores for big ticket, aka high profit margin, items - I see these places as a super radioshack.

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