It is not looking good for Circuit City these days. It seems the current economic crisis has weighed very heavy on their survival. After showing a quarterly loss of over $239 million, it is safe to say this might be the end of the electronic franchise. Stock prices have now dropped to a staggering .40 cents a share. That is over 80% drop in the past six months. This time last year the stocks share price was over $9 a share.

Seeing the $1.3 billion buy out offer from Blockbuster early this year withdrawn, started a downward spiral that I don’t think anyone can save. Also their new CEO has appointed some independent advisers to bring this company back from the dead. I’m sorry to say it’s just too little, too late.

To make things even worse, The Washington Post has just stated that, “Circuit City Stores lost a recommendation from a firm that advises manufacturers on whether to ship goods to retailers.” They are concerned that the company may have trouble paying its vendors.

So if you are thinking of buying a warranty for that new TV you just bought there, think it through. And if you have been holding on to some gift cards from last Christmas now might be a good time to cash those in. Even with the holiday buying season rapidly approaching, forth quarter sales just wont be enough to keep this sinking ship above water.

[via Consumerist]

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