Circuit City Closes Its Doors
Circuit City is set to liquidate its stores, but it’s reassuring to know that people facing unexpected layoffs can count on payday loans to get them through tough times. The United States unemployment rate is higher than it has been in years. Circuit City is just one of many major companies to shut its doors, and from the looks of things, it won’t be the last business to do so either.
Bankrupt Circuit City Stores
Circuit City Stores Inc, is the second largest electronics retailer in the country. Unfortunately, because of a decrease in consumer spending, Circuit City has been forced into bankruptcy. Circuit City was searching for a buyer to take over and refinance its debt but was unsuccessful. There were two potential buyers, including Golden Gate Capital and a Mexican billionaire Ricardo Salinas Pliego, who is in charge of an electronic store chain located in Latin America. However, neither was able to acquire the financing necessary to buy out Circuit City.
30,000 Lost Jobs
Because Circuit City was unable to find a buyer, it is going to close its 567 U.S. Stores. With the store closures come job losses. In this case, Circuit City will have to cut 30,000 jobs. Employees were informed today, January 16, 2009, that they would be losing their jobs, and some stores could begin the liquidation/closing process starting tomorrow.
Low Consumer Spending
2008’s holiday shopping season was the worst in over forty years. Consumers have greatly limited their spending due to the poor economy and worries over job security and diminishing retirement funds and have had to rely more on Payday Loans. Circuit City is not the only company to feel the negative effects of low consumer spending. KB Toys, Goody’s Family Clothing, Gottschalks Inc., Linens ‘N’ Things, and other big name stores have all filed for bankruptcy. Chances are consumer spending will continue to decline throughout 2009.
Obama’s Plan
Even President-elect Barack Obama isn’t very hopeful about the economy’s immediate future. He wants Americans to realize that the economy can’t turn around over night. Obama is taking steps to improve the economy, but he warns that the economy still has the potential to get worse before it gets better. Obama is making the economy his priority, and is excited about the $825 billion economic stimulus bill presented by the House of Representatives earlier this week. Obama wants to create over 500,000 jobs in the renewable fuel technology field.
Unemployment
Although President-elect Barack Obama has a plan to improve the unemployment rate in the United States, it is likely that more jobs will be lost before Obama’s plans come full circle. With the economy struggling like it is, paying for bills and simply getting by, isn’t so simple. Making ends meet is extremely difficult these days even if you do have a job. Surviving this economy without a job is nearly impossible. That’s where payday loans come in. If you have a steady source of income, which in the case of unemployment, is your unemployment check, you are eligible to receive payday loans. Payday loans can help you cover your costs in these hard times.
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I don’t like to see this happen but it seems to me there are enough of these types of stores around for electronic goods.
Let’s hope this will all be behind us soon.
I just don’t get it… these major companies are going under due to consumers not spending and them not bringing in revenue right?… and consumers are not spending because of things such as being laid off, pay cut or just plain being scared to spend during this economic crisis. The effect is businesses are not making enough to stay a float and that effect cannot keep paying their employees. Well if us the “consumers” who are really what keep these businesses running why don’t we get more then a $600 if that stimulus check? Give us enough to buy a brand new car or maybe even debt forgiveness then maybe we can start spending again. This economic crisis has definitely taught me a lesson in saving techniques and when this is all said and done and over with I know I will be a lot more careful on how I budget my money in case this happens again, and I’m sure I’m not the only one.
Every money lending business has it’s market especially in these financially challenging times.
I think that it is a shame a lot of large companies are struggling. I wonder if they had a stronger online presense and were able to make money online if they would have been able to work through this downturn.
I am trying to understand what you are saying. You state, at first, the newly laid off can rely on payday loans. Then further down in your blog you say that you need to have employment. You see the counter diction here? Or not? I heard some bad things about payday loans. What about that.The high interest put on such loans saps the life out of the poor. Have you discussed that? Just curious.
That sure is rough!
I really hope Obama can do something to turn the unemployment situation around in our country. Large businesses like Circuit City should not be going out of business. Now when I want electronic goods, I have to go to Best Buy. What other choice do I have? I’m just fortunate to still have my job. Keep your fingers crossed that my company doesn’t shut down, too. We voted for change–I hope Obama can change the economy.