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Posts with tag CircuitCity

DHL, Circuit City workers may have seen layoffs coming

Filed under: Technology, Career, Recession, Bankruptcy

As Circuit City seeks bankruptcy protection, and DHL U.S. Express announced plans to lay off 9,500 workers, I can't help but think back to decisions the companies made six months to a year ago that foreshadowed these moves Monday. For Circuit City, it was laying off workers that I think helped lead it to bankruptcy, and for DHL it was a merger that eventually led to jobs being lost. Either way, workers were harshly affected.

Circuit City has had its share of poor decisions over the years, but at least customers knew when walking in that it had some of the most knowledgeable sales people in the industry who were willing to help. I don't know much about electronics, but after going into a Circuit City store, I knew a lot more and could make an informed decision.

But a year ago, the company laid off thousands of its experienced salespeople. Sure, it saved money with fewer workers and the cheaper employees who remained, but it easily looked like a dumb move at the time by anyone who had done business there.

Short circuit: Don't expect great deals at Circuit City's liquidation sale

Filed under: Shopping, Technology, Recession, Bankruptcy

Circuit City, the struggling Big Box electronics retailer, announced earlier this week that it will be closing some 20% of its North American stores in an effort to regain profitability. It will shutter 155 of its 700 stores and lay off about 17% of its workforce.

But wait! If it's closing stores, doesn't that mean great bargain hunting? Not at all. The Consumerist lays out the ugly truth about liquidation sales -- that contrary to public perception, there are generally few real deals to be had at such events.

What typically happens when a store goes into liquidation is that a third-party is hired to organize the actual sale. Think of a liquidation company as a junkyard dog; mean, ugly, and not inclined to give *anyone* a deal.

XP holdouts unite

Filed under: Recalls, Shopping, Technology

The movement to convince Microsoft to continue XP past this June, when it was supposed to fade away as Vista became supreme, just became a lot more real to me. I bought a new Gateway with Vista with my tax rebate money. I was never that thrilled with XP, but after six days on Vista I am running back.

I turned to this story from InfoWorld in January, which outlines how businesses are begging Microsoft to keep XP. They've even started a petition to send to Microsoft. I quickly signed it.

Over the last few days we've seen the Blue Screen of Death five times. Vista, it turns out, doesn't like Dreamweaver. Vista also rejects my new Canon All-in-One out of hand. It's not just that this program or printer doesn't work. Vista collapses at the mere thought of them on the same computer. Needless to say, Canon's excellent photo-editing software is out of the question. Remarkably, so is have a picture in an email signature -- something XP handled with no problem.

2007 Departures: CompUSA failed to upgrade

Filed under: Entrepreneurship, Shopping, Technology

Computer geeks and anyone else who wants to find a wide selection of accessories for their computer systems will miss CompUSA when its doors close at the end of 2007. It's mind-boggling how the richest man in the world, Mexican retailer and telephone baron Carlos Slim, could turn a multi-billion investment into zero in just eight years. In 2006, CompUSA had $4 billion in sales; that's expected to drop to just $1.5 billion in 2007 with more than 100 stores closed throughout the year.

In its heyday, CompUSA offered better protection for consumers who bought its extended warranties and better service than Best Buy ever could. While the service contracts will still be legally valid, I doubt the service will be anywhere near as good as it was when you could walk into a CompUSA store and work directly with the service people. CompUSA bailed me out of a number of computer crises over the years and I for one will miss them dearly. Luckily I'm married to a computer geek now who can do my repairs for me. My business would be shut down without my computer.

The biggest mistake Slim made was underestimating the need for marketing. While Best Buy and Circuit City fought it out for customers on the airwaves, CompUSA stayed silent. There was just too much noise from competitors and not enough response from CompUSA.

We'll miss you, and hope we can find another good outlet for computer accessories and support. For all the computer geeks out there that lost jobs as tech jobs moved overseas, this could be a blessing in disguise. It may be a good time to look into starting your own computer support businesses and replace the void CompUSA will leave.

This post was written as part of a series on on 2007 departures. Read about more products, companies and people you won't see in 2008.