| Monday, November 03, 2008 |
| How NOT to succeed in business |
March 2007. That was when I resolved never again to shop at Circuit City, which decided to lay off 3,400 workers in order to save money. The laid-off workers were the most experienced, and thus the highest paid. The replacements, presumably, could be paid peanuts.
Now, in the age of online shopping, the only reason to buy components in a brick and mortar store is because you can get personal service and someone who really knows the equipment can help you decide what's right for you. A lot of our home audio and video equipment is from Magnolia, where a sales associate spent several hours helping us make our choice. (Then a team came to our home and set it up for us.) As a result, we've been completely satisfied with our purchase, and I'm sure it will continue to serve us well for years to come.
According to a human resources consultant quoted in this April 2007 article, "It will give [Circuit City] short-term gains, but for the long term it’s like shooting yourself in both feet with a howitzer."
How right he was. Today brought the news that Circuit City will be closing 20 percent of its stores. Its stock is currently trading at about 38 cents a share and is likely to be delisted. "We think there is a fair chance (Circuit City) will be forced to file for Chapter 11" bankruptcy protection, according to one analyst.
The March 2007 layoffs weren't mentioned in any of the current articles I read, but I find it hard to imagine that they didn't play some part in the company's downfall. |
posted by 125records @ 4:57 PM  |
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Name: Sue
Home: San Francisco Bay Area, California, United States
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