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1. 

   Lucretious, Jul 2nd, 2008 @ 5:54pm

   
   

   It would suck to see Circuit City go under. I like their stores far better than Best Buy.

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2. 

   nonuser, Jul 2nd, 2008 @ 6:32pm

   
   

   really didn't make any sense

   I could see where they might do some hand wringing about not being able to sell the TV sets and game consoles, but that is just a completely different business with little overlap in expertise. And with Circuit City being hit by the triple whammy of the recession, weak dollar vis supplier countries, and rising fuel prices for transportation, the timing is bad as well.
   
   Blockbuster does have a nice niche, that is group media shopping by dormmates and apartment mates in their 20's and 30's. One obvious area for extension would be audio recordings, but of course that whole industry has pretty much gone kaput. Maybe they should sell used CD's for below $10, that would have the low cost, opportunistic shopping aspect that fits in with the rest of their experience.

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3. 

   Tray, Jul 2nd, 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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4. 

   Michael Setzer, Jul 2nd, 2008 @ 7:06pm

   
   

   Why?

   I couldn't see why Blockbuster wanted Circuit City in the first place. One's a video rental store and the other's an electronics retailer. Where's the synergy? Where's the complimentary business?

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5. 

   Anonymous Coward, Jul 2nd, 2008 @ 9:05pm

   
   

   The "logic" of BB buying out CC went out the door about two months ago when just maintaining what you have (even struggling) is more important to stock holders than taking a chance. The economic market is in poor shape and stock holders are demanding conservative decisions.
   
   More than anything else, this just seems like a scared reaction to the current market instead of actually trying to build a lasting buisness.

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6. 

   johnny, Jul 3rd, 2008 @ 5:19am

   
   

   I think that

   "Crazy" Eddie Antar might be interested!!!

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7. 

   Anonymous Coward, Jul 3rd, 2008 @ 5:30am

   
   

   Re: Corporate Culture = Failure

   Their profit margins are rather low. They deal with value not price. Hey, techdirt nerds, you don't know as much about business as you think you do.

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8. 

   Glenn Charles, Jul 3rd, 2008 @ 4:56pm

   
   

   Infinite or intangible goods

   It's not a good example, but; what are your reactions when I pose as the local computer gear guru on the strength of Techdirt writings? I mean, I have a lot of people fooled here now.
   
   
   (Actually, if I get bullied into giving advice or whatever I just blame it on you. Still, the question is valid.)
   --Glenn

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