America we have a large variety of places to buy home electronics but there is only one place we like to go to get the sounds hooked up in our cars and that's Circuit City. Well Circuit City is finally throwing in the towel. Confronted with weak sales, impatient shareholders, and a U.S. consumer pummeled by recession, the electronics chain capitulated on May 9 and retained Goldman Sachs to help negotiate a deal with Blockbuster Video led by billionaire and majority stock holder,Carl Icahn.
A far bigger problem for Circuit City? Its future prospects are likely to turn even gloomier, with U.S. consumer spending in the doldrums and unlikely to recover in the near term. In March, the Commerce Dept. reported that spending grew just 0.1% and much of that was for necessities such as medical care and haircuts, not the electronics gear found at Circuit City and rivals. Source: BUSINESS WEEK