Liquidators managing the going-out-of-business sales at Circuit City stores nationwide announced today that, due to record shopper turnout since the clearance sales started over a week ago, deeper discounts of up to 40% on selected merchandise will be offered at all stores beginning on Thursday, January 29.
Great American Group, LLC, one of four companies contracted to liquidate all the inventory at the 567 Circuit City stores nationwide, said that prices on all plasma televisions will be slashed 25% off of original prices, with other brand name flat screen and LCD models reduced to 20% off. Car audio components, such as speakers, radios and CD changers, will be discounted 40% off.
All other store merchandise, such as computers, cameras, camcorders, video games, MP3 players, DVDs and CDs, will be sold at substantial discounts, the company noted, including those items that typically receive no kind of list price discount.
“We are very pleased with the reception that these clearance sales has received, and we anticipate that more and more people will come out to take advantage of the great bargains being offered,” said Scott Carpenter, executive vice president, director of operations, for Great American Group, which has been overseeing all the sales activity along with other members of the joint venture group. “With the Super Bowl coming this Sunday, we expect many consumers to be purchasing HDTVs, especially in the 50″ and larger widescreen sizes.”
Carpenter noted that Circuit City’s nine distribution centers across the country are being “emptied out” to accommodate the demand for the televisions and other electronic items. “Most stores will have additional merchandise on their shelves, including a range of popular brand name items, beginning Thursday, but we expect supplies to go quickly. For the best selection, we advise shoppers to come in early,” he said.
Since the clearance sales started on January 17, more than $450 million of Circuit City’s $1.7 billion of inventory has been sold, Carpenter noted. “So far, sales have been better than expected, and that’s because we are offering consumers very attractive discounts on highly desirable items,” he said.
Because the clearance sales have been so brisk, they are expected to last only another four to five weeks, rather than the eight originally anticipated, cautioned Andy Gumaer, chief executive officer of Great American Group. “Absolutely everything in the stores must be sold,” he noted. “Everything will be liquidated to the bare walls.”
The other three companies partnering with Great American Group to handle the liquidation are SB Capital Group, LLC, Tiger Capital Group, LLC, and Hudson Capital Partners.
The Circuit City liquidation is one of the largest retail liquidations to take place in the U.S. to date, and the largest yet of any major national consumer electronics firm, according to the liquidators. Other major retailers that have closed in recent months include Mervyns, Steve & Barry’s, KB Toys, Shoe Pavilion, and Linens ‘N Things.