US Webworx

By Andria Cheng & Steve Gelsi, MarketWatch

NEW YORK (MarketWatch) — Hurt by competition from Best Buy Co. and Wal-Mart Stores Inc. and by pressure from the downturn in the economy that led shoppers to cut back on discretionary purchases, the 59-year-old chain Circuit City Stores Inc. filed for Chapter 11 bankruptcy protection Monday.
The Richmond, Va.-based consumer-electronics retailer, which has seen its shares tumbling 99% from a 52-week high of $8.24, negotiated a commitment for a $1.1 billion debtor-in-possession revolving credit line that will allow it to pay vendors and operate business as usual. The credit line replaced its $1.3 billion asset-based credit line provided by the same lenders. Circuit City said in the filing, made through the United States Bankruptcy Court for the Eastern District of Virginia, that it plans to emerge from the bankruptcy protection in the first half of 2009.
Chart of CC
The company disclosed $3.4 billion in assets and $2.32 billion in liabilities in the filing. Unsecured trade debt owed to vendors will total not less than $650 million, Circuit City said. It buys products from Samsung Electronics to Hewlett-Packard Co.

CC 0.10, -0.17, -63.0%) fell 56% to 11 cents a share Monday, while shares of rival Best Buy (BBY:
Best Buy Co., Inc
BBY 25.21, -0.38, -1.5%) fell 1.5%, giving up a morning advance as the broad market turned lower.
Circuit City’s filing came a week after the company, suffering from declining sales, traffic and cash, said that it planned to shut 155 U.S. underperforming stores and cut 7,300 jobs in a last-ditch effort to stay afloat. Despite its aggressive efforts to talk to its vendors, their loss of confidence and fear they won’t be paid made it extremely difficult for the company to have the goods and support service it needed for the critical holiday season without a bankruptcy filing, Circuit City said in the filing.
“Despite aggressive efforts to secure vendor support, vendor concerns about the company’s liquidity and ability to pay for its purchases in this difficult economic climate have escalated considerably” since Nov. 3, when the company provided a liquidity update, Circuit City said. It said vendors were demanding cash payment in advance instead of customary trade credit.
Circuit City had been hurt by having stores in less-favorable locations than those of Best Buy Co. (BBY:

BBY 25.21, -0.38, -1.5%) , by increased competition from the likes of Wal-Mart Stores Inc. (WMT:
Wal-Mart Stores, Inc

WMT 55.18, +0.79, +1.5%) and by an earlier move to lay off higher-paid staff who were able to push more profitable sales, according to industry observers. The financial sector meltdown also exacerbated Circuit City’s woes as shoppers were unable to borrow through credit cards, with those purchases representing 75% of Circuit City’s sales, the company said.
“This is a major positive” for Best Buy, Wal-Mart, Costco Wholesale Corp. (COST:
costco whsl corp new com

COST 53.00, -1.07, -2.0%) and others, Credit Suisse analyst Gary Balter said in a note. “We have not seen a consumer electronic retailer successfully reorganize in Chapter 11 in our 24 years in this space. Should (Circuit City) ultimately close all of its operations, we assume there’s roughly $10.5 billion of annual domestic sales up for grabs. Best Buy should take a disproportionate share of that business.”
Circuit City has removed its chief executive and explored a sale of the company earlier this year after Blockbuster Inc. backed out of its original bid. In addition to staff cuts from the store closings, Circuit City said it’s also cutting an additional 700 jobs.
Circuit City has 39,600 employees and said in the filing it expects to employ another 11,000 additional part-time employees this holiday season
Circuit City had loss of $404 million in the six months ended Aug. 31, hurt by a double-digit decline in store traffic. That followed two straight years of losses.
As of Oct. 31, Circuit City had 712 stores and nine outlets in the U.S. and Puerto Rico. Its international segment operated through 770 retail stores and dealer outlets in Canada as of Sept. 30.

Tom Kiefer has joined U.S. Webworx.com as head designer and css helper, he brings allot of knowledge to the table with the desire to learn even more. His most recent website is Bulldog Racing its an excellent site and I look froward to finally having a graphic designer that is eager to learn more and more about the full business. Tom is married to a wonderful and supportive woman and has one son who is an absolute riot to be around. Tom’s other “child” is a 30LB Mancuso Cat (Sabby). Tom Kiefer will have allot to do to help get some projects off of the ground but I have more faith in him that my last graphic designer who is basically a thief and stole web hosting space to give to his family at a discounted rate however he “forgot” to pay me, Clay Thornton the owner of the company. It has taken me 3 months to find someone trustworthy enough again since being burned once by someone who claimed to be a friend

RICHMOND, Va., Oct. 30 /PRNewswire-FirstCall/ — Circuit City Stores, Inc. (NYSE: CC - News) announced today that, on October 24, 2008, the New York Stock Exchange (NYSE) notified the company that it did not satisfy one of the NYSE’s standards for continued listing applicable to the company’s common stock. The NYSE noted specifically that the company was “below criteria” for the NYSE’s price criteria for common stock because the average closing price of the company’s common stock was less than $1.00 per share over a consecutive 30-trading-day period as of October 22, 2008.

Under NYSE policy, in order to cure the deficiency for this continued listing standard, the company’s common stock share price and the average share price over a consecutive 30-trading-day period must both exceed $1.00 by six months following receipt of the non-compliance notice. The NYSE also notified the company that the NYSE has the right to reevaluate continued listing determinations with respect to qualitative listing standards, including an abnormally low selling price at sustained levels.

The company’s common stock remains listed on the NYSE under the symbol “CC”, but the NYSE will assign a “.BC” indicator to the symbol to denote that the company is below the quantitative continued listing standards. As required by the NYSE’s rules, in order to maintain the listing, the company will notify the NYSE, within 10 business days of receipt of the non-compliance notice, of its intent to cure this price deficiency.

About Circuit City Stores, Inc.

Circuit City Stores, Inc. (NYSE: CC - News) is a leading specialty retailer of consumer electronics and related services. At August 31, the domestic segment operated 705 Superstores and 9 outlet stores in 158 U.S. media markets. At August 31, the international segment operated through 772 retail stores and dealer outlets in Canada. Circuit City also operates Web sites at www.circuitcity.com, www.thesource.ca and www.firedog.com.

(Logo: http://www.newscom.com/cgi-bin/prnh/20010709/CCLOGO )

SAN FRANCISCO (MarketWatch) — Circuit City Stores (CC:

CC 0.30, +0.01, +3.5%) said late Thursday it received a notice from the New York Stock Exchange last week that the company was not meeting the exchange’s price criteria because the average closing price of the company’s common stock was less than $1 over a 30-trading-day period as of Oct. 22. According to NYSE regulations, the company must notify the exchange within 10 business days of its intent to remedy this price deficiency.

Circuit City shares have fallen as its results have weakened amid a deteriorating retail environment and heightened competition from rival Best Buy Co. and others. Since the beginning of the year, shares have lost most of their value, down 93 percent.

Its shares have closed under a dollar in trading since Sept. 30, when the stock closed at 76 cents. Shares rose a penny to close at 30 cents in trading Thursday but fell a penny in aftermarket electronic trading to 29 cents.

In order to regain compliance with the NYSE, Circuit City’s common stock share price and the average share price over a consecutive 30-trading-day period must both exceed $1 within six months following receipt of the notice.

The company’s “CC” symbol will receive a “.BC” indicator to show it is below the continued listing standards. Circuit City has 10 business days to notify the NYSE how it will remedy the price deficiency.

Asked how Circuit City will convey its plans to regain compliance, spokesman Bill Cimino said the company “will have those conversations with the Exchange in due course.”

Earlier Thursday, a major Circuit City shareholder — Classic Fund Management AG, a Liechtenstein-based asset management company — said in a regulatory filing that it cut its holdings to 8.2 million shares, or about 4.8 percent, from 9.5 million shares, or 5.6 percent. It did not disclose a reason for the change.

Richmond, Va.,-based Circuit City, which is in the midst of a comprehensive review as it works to operate as a standalone business while exploring strategic alternatives, has had only one profitable quarter in the past year. It posted a wider second-quarter loss last month with a 13.3 percent decline in same-store sales.

Last week, The Wall Street Journal said Circuit City was considering closing at least 150 locations and slashing thousands of jobs to avert filing for Chapter 11 bankruptcy protection, citing “several people familiar with the matter.” The company did not comment on the report.

Closing dozens of stores would allow the retailer to liquidate $350 million in inventory that could be used to pay real estate costs, including leases on abandoned sites.

Circuit City gets warning from NYSE on stock price; shareholder lowers stake

RICHMOND, Va. (AP) — Circuit City Stores Inc. said Thursday the New York Stock Exchange has warned it that its stock price is not high enough for continued listing.

The NYSE said shares in the nation’s No. 2 consumer electronics retailer had an average closing price of less than $1 over 30 consecutive trading days as of Oct. 22, falling short of the exchange’s requirement.

MINNEAPOLIS, Oct 30 (Reuters) - Electronics retail leader Best Buy Co (BBY.N: Quote, Profile, Research, Stock Buzz) would look to snap up some stores closed by distressed rivals, an executive said on Thursday.

“I think there’s going to be a number of storefronts that close down,” Best Buy President and Chief Operating Officer Brian Dunn told reporters at company headquarters.

He added that Best Buy would seize opportunities to pursue stores closed by rivals should the vacant space make sense for the company’s brands.

“If store fronts close, a big number, you can bet that we will jump in and connect with those customers … and take advantage,” Dunn said. “If there’s a big opportunity, we’re going to absolutely go after it.”

Earlier this month, The Wall Street Journal reported and some analysts wrote that smaller rival Circuit City Stores Inc(CC.N: Quote, Profile, Research, Stock Buzz) might close hundreds of stores in a bid to improve performance.

Circuit, the No. 2 electronics retailer, has said that all options, including store closures, are on the table as it tries to reverse a prolonged earnings and sales slump.

“If Circuit City did go out, I would not be jumping up and down,” Dunn said. “I think it would be a sad day for the industry.”

Dunn also said that Best Buy intends to grow, not cut, its way through the current business slowdown. For example, he said his company planned to roll out more stand-alone Best Buy Mobile stores this year, reaching as many as 40 by year-end. He said the company aimed to reach a 10-12 percent market share in its mobile business in three years from about 2-4 percent share today.

Best Buy also said that so far it has seen no change in terms from vendors.

HOLIDAY STRATEGY

To lure holiday shoppers amid the slowing U.S. economy, the Minneapolis retailer said it plans to focus on value-priced products and service.

That includes making sure that store workers are available to aid customers and offering a broader assortment of some products at lower prices as well as financing options to purchase.

Ads for Black Friday, also known as the day after Thanksgiving, will air beginning Nov. 25 and will focus on persuading consumers to make Best Buy a destination store.

The retailer also will offer exclusive shopping events in its stores for groups such as its 33 million “Reward Zone” customer loyalty program members, and a smaller group of about 1 million shoppers who spend at least $1,500 a year in its stores.

It expects hot-selling products this holiday season will include cell phones, laptop computers, games, navigation systems, flat-panel TVs and digital frames.

Best Buy also said it will continue to provide different payment options for consumers, such as a program that gives no-interest financing for 18 months on total store purchases of at least $499.

“Financing resonates more with consumers this year,” said Ryan Robinson, chief financial officer for the U.S. business.

Earlier this month, Best Buy said sales at stores open at least 14 months fell about 2 percent in September amid the global financial crisis.

Mike Vitelli, executive vice president for customer operating groups, said demand for discretionary items such as wide-screen flat-panel televisions and higher-end appliances slowed in the past month.

Despite the recent sales slowness, Best Buy said it was continuing to gain market share, and Vitelli added he expects sales of flat-panel TVs to bounce back.

“We’re confident that we’re still gaining share in a tough environment,” Vitelli said.

To fuel holiday sales, Best Buy was offering a broader assortment of smaller flat-panel TVs at “traditional” price points, he added.

The retailer said it also has expanded its offerings of accessories such as cases for laptops and mobile phones, offering more colors than the traditional black.

In recent days, a number of analysts have lowered earnings estimates for Best Buy, saying tumbling consumer confidence will challenge its holiday sales.

Circuit City Stores said on Thursday that it had received notice from the New York Stock Exchange that it does not comply with the exchange’s stock-price standard. Circuit City’s average closing price was less than $1.00 over a consecutive 30-day trading period as of Oct. 22, it said.

Best Buy shares rose 6.3 percent to close at $24.61 on the New York Stock Exchange on Thursday.

Who’s Next was the title of a classic rock album from The Who, of course, back in the days of vinyl records, but today when that phrase is mentioned, it’s more likely to be referring to the list of troubled companies on the verge of bankruptcy.

Big box retailer Circuit City (NYSE: CC) may be next to declare themselves insolvent, although they are said to be pulling out all the stops to avoid that outcome.

Trading over $8 a share just one year ago, Circuit City’s share price has been in steady decline and has fallen off the cliff lately to settle around 45 cents per share. Circuit City has, according to a Market Watch report, been in talks to secure a line of credit to cover operating expenses while in receivership (in anticipation of a bankruptcy declaration), but the lack of available credit in the current economy has left them with no takers willing to finance them through re organizational bankruptcy.

This leaves the company with little choice other than scaling back operations and liquidating whatever it can for emergency cash. Initial statements suggest that 150 of Circuit City’s 1484 stores in the US and Canada may be shut down. As recently as September you will recall that Circuit had announced a slowdown in the planned store openings for the coming year. It seems that wasn’t nearly enough.

In addition to the closings, Circuit City may be liquidating up to $350 million in inventory, likely at fire sale pricing. If you’re in the market for a big screen TV and you have enough cash left over after filling your gas tank, this might be your opportunity. This hints at one of the causes of Circuit City’s troubles. During a period when Americans are uncertain about their personal income, and when they see their net worth falling everyday not only with real estate values, but also with falling 401k and other stock market investments, they are much less inclined to purchase high ticket luxury items like fancy new appliances or entertainment systems. With companies like Circuit City now focusing on cost-cutting and reducing payroll, things are likely to get significantly worse before they get better.

Circuit City is perhaps the earliest and hardest hit by the current slowdown as they were already losing customers to competitors. Having fumbled around with redesigning store layouts and sales structures, Circuit City has been unable to find a retail model that draws customers. No detailed estimate of the number of employees likely to be released was available although the Associated Press, citing unidentified sources put the number in the thousands. My own estimate, based on 150 stores shutting down would put the number between four and five thousand workers. If the remaining stores and corporate operations also pare staff the number could go higher. Circuit City currently employs about 45,000 people, although that number includes both US and Canada operations.

It is not known how many of the reportedly closing stores are in the United States and how many are in Canada. However, one has to wonder how much of an effect this sort of spill over of US economic troubles will have on Canada going forward. If other multi-nationals begin paring operations there as well, we could see the two trading partners reinforcing each other’s decline.

Here is a Youtbe video of where CC’s money is going to pay for at stores all over

Yep stocks at $0.29 as of 1:40PM October 22 2008 and I find stuff like this on you tube yet they laid off tons of good employees and yesterday was my last day at being a Peon!

Best Buy Dance Off

Welcome to the world of an one man webdesign company, 1 man because no one else is trustworthy, well I do have 2 silent partners that are trustworthy and very good but they remain un named. The first partner I had ended up being a thief, he was stealing space and giving it to family members and then would get mad when I asked for a payment. So I did what any owner would or should do I confronted his family about this and they told me they were paying him….so therefore he was stealing and was banned from the server…in the near future I might reveal his name and website just so you my future customers can avoid him.