The liquidation sale starts today at Circuit City, the largest retailer to be upended by the widening financial crisis, yet another hit to a local economy pounded by the bankruptcies of two department stores - Mervyns and Gottschalks.The company announced Friday it would close its 567 stores in the U.S., including one in Santa Cruz, after attempts to sell the business failed.The nation's second-biggest consumer electronics retailer has more than 30,000 employees.Circuit City had been seeking a buyer or a deal to refinance its debt, but the credit crunch and consumer cutbacks proved insurmountable.Negotiations extended past midnight Thursday, then fell through, Circuit City lawyer Gregg Galardi said.
It's not clear that these sales will stay in the county or go to large discount stores in San Jose.
This recession is hitting virtually all sectors of the economy and is getting worse." But Lyle Troxell, host of the Geek Speak show on KUSP-FM radio, contended Circuit City's demise is not a big loss.
"I would go to Fry's (in San Jose) or Santa Cruz Electronics, which has great customer service," he said.
"You can get cables for less at an office supply store.
Circuit City has a large collection of movies, but you can get that online.
For a large format TV, Costco is a better bet." Troxell said selling technology is tough because it doesn't work for the vendor to stock equipment.