Quickdraw

Circuit City's Liquidation: Schoonover Could Have Saved It but Didn't

Regarding your observations on Todd Sulivan's comments about Phil ... I think your term 'hate' is a bit harsh. I believe 'contempt' would work here ...

Phil would have loved to reap the kudos, if there were any. He was certainly in position long enough to effect change at Circuit. Phil is a moron who was 'way over his head' at BBY, and got out while short-term results said otherwise. His short-sightedness was eclipsed only by his own sense of self-importance. Circuit didn't just make a handful of mistakes and then have their luck fail also; they were soooooooo far behind in the great retail race, from their perpective they thought they were ahead. Todd Sullivan was correct to predict that the only viable option for any prospective buyer, would be to let 'em die and pick the bones.

We will only hope to imagine if poor 'ole Phil is being hit hard, like the other 34,000 employees. We will more likely imagine him sitting on the beach, drinking something wonderful out of a pineapple.


On Jan 19 09:43 AM CC guru wrote:

> Another poorly written article by Todd Sullivan. I have no clue why
> this guy hates Schoonover so much. Did Schoonover do a poor job?
> Yes. Did Schoonover have the experience for the helm? No. Did Schoonover
> get involved with a company that had countless problems that kept
> getting swept under the rug way before his time so when he came into
> the position he inherited them. Most definitely. While Schoonover
> did make some bad calls, I think we need to also point the finger
> at 10 years of bad management. Oh and if you read this Todd, spurning
> a deal from Blockbuster actually isn't a bad thing. Blockbuster is
> the next major retail to go under. Good luck to all the CC employees
> and anyone else who is in a position within another company that
> is now unemployed.

Circuit City: Closing Time

Finally ... the trapdoor has sprung. Unfortunate for the 30,000 employees, but healthy for the marketplace. The company who became the poster child for 'the wrong way to do business' is validating our faith in Darwin's Theory, as it might pertain to retail.

This story is less about the economy, than it is about Circuit's own shortcomings. I am certain we will all hear about "the good employees who lost their jobs, through no fault of their own" ... history will record Circuit's epitaph very simply. When you sell products that can all be bought elsewhere at the same price, and you suck at virtually every aspect of operations and customer service, then you hang.

What Do We Need In 2009? More Failure

Unlike in the case of terminally ill humans, there exist no laws to prevent the euthanization of businesses ...

Pull the plug! Most Americans would prefer to see the Big 3 survive and become healthy once again ... unless that means we all must ante-up from our own pockets an absurdly large sum, to continue life support. It is a commonly accepted premise throughout many fields, that getting rid of the bottom performers promotes a healthier big picture. It is certainly true in the business world.

Few people would knowingly chose to buy the less effective drug, the poorer investment choice, inferior products, or the runt-of-the-litter ... especially not when they are priced at or above better options.

I see the future of the Big 3 resembling this: The phoenix that will rise from the ashes of their galactic short-sightedness and failure will be a better business model. Let them die ... in a few months, perhaps a year or so, the economy will resurrect itself and be stronger for the experience. If we continue feeding this monolithic failure, and throwing good money after the bad, then our grandchildren will still be paying for the priviledge of poorer choices regarding their vehicle purchase options.

Ironic Headline of the Day (Hint: It's About GMAC)

"If you keep on doing the same things you've always done ... you'll keep on getting what you've always gotten."

For all of our sakes, and for the livelihood of our grandchildren, let's hope this saying doesn't re-live itself regarding GM's bailout and our money. All Americans have been forced by our government to pay for a monolithic business failure. I am skeptical of any positive learning experience,,given zero accountability for our loot ( and for the dismal performances by everyone associated with this taxpayer robbery ).

GMAC: Why the Bond-Exchange Silence?

Unlike in the case of terminally ill humans, there exist no laws to prevent the euthanization of businesses ...

Pull the plug! Like most Americans, we'd prefer to see the Big 3 survive and become healthy once again ... unless that means we all must ante-up from our own pockets an absurdly large sum, to continue life support.

I see the analogy more closely resembling this: The phoenix that will rise from the ashes of their galactic short-sightedness and failure will be a better business model. Let them die ... in a few months, perhaps a year or so, the economy will resurrect itself and be stronger for the experience. If we continue feeding this monolithic failure, and throwing good money after the bad, then our grandchildren will still be paying for the priviledge of poorer choices regarding their vehicle purchase options.

GM Proves There Is an Alternative to Bailouts

'Working stiffs' won't be working for much longer. Most Americans buy things based upon a value/price equation which they perceive. They don't care how much the people earn, who make the products. They do care about getting the most for their money. Health care and related issues do present a growing challenge to all Americans. Until someone decides to pay for mine, however, I have a low threshold of caring about other's. Surely you wouldn't suggest that I pay for mine AND yours?

Yes; when I invite people over for dinner, I do attempt to serve something they will enjoy based upon their likings. That's called being a good host.

Your blogs underscore that you are also very sadly underinformed, about a wide variety of things. For instance, you clearly do not know the definition of 'slave' ... and it sounds like you could be overextending yourself, with regards to credit.

I'd be upset also. But I'd try to know what I'm talking about, before I post blogs here for the whole nation to see, if I were you.

GM Proves There Is an Alternative to Bailouts

To User 303820 ...

I believe your anger is misplaced. Shouldn't you really be angry with all of our fellow Americans who have chosen to buy the products made by the more highly competitive companies?

The last time I checked, the Honda, Toyota, and Nissan assembly plants right here in America didn't employ 'slave labor'. They do seem to be making products that a significant number of us prefer to buy.

Light the torches! Grab the pitchforks! Let's git 'em!

GM Proves There Is an Alternative to Bailouts

Okay ... Gm, Ford, and Chrysler are the very best. UAW workers are far superior to all those other auto workers. Everyone involved with the Big 3, at any level, are the foundation for our country and the cornerstone of business everywhere.

So why again do they have their hats out, asking all Americans to ante-up so that they don't have to declare bankruptcy?

Yep ... they are the best. Sure they are. Of course they are.

GM Proves There Is an Alternative to Bailouts

My heart goes out to all of the autoworkers who are about to lose their jobs. When jet airplane engines replaced those with propellers, and when film cameras were displaced by digital versions, some folks lost their jobs through no fault of their own.

When sales of any product drops substantially, then production is adjusted downward. Duh ... so why do the autoworkers of our Big 3 seem to think they are 'entitled' to their jobs, when the products they make are clearly not selling? According to sales trends, then a quarter of the UAW (and management, and executives, and dealerships, and salespeople at the dealerships) are not needed.

This isn't about unions, imports, or politics. It is all about supply-and-demand in a capitalistic economy. Throughout our great nation, most people in general do care about the lives and livelihoods of the UAW autoworkers.

We simply don't care enough to whip out our wallets and give them the salaries they somehow believe they are 'entitled' to. Let the house of cards in Detroit fall.

Paulson Grasps the Automaker Nettle

Billions for the financial institutions that practiced questionable lending ...

Billions for the automakers who build products that a significant percentage of the potential market chooses not to buy ...

For the rest of the country, the questions are mounting: What if we don't own a home, or a new car? Tell us again, why we are being asked to prop up the house of cards? Our grandchildren will still be paying for these so-called 'bailouts', which everyone will soon realize bought us nothing. A trillion dollars, to finish right where we started.

If the cards fall, and the people who collectively made the mistakes that led us here are out of the way, and the immediate future for our economy is indeed looking grim. Retailers will sell less. Services will be suspended. A galactic correction occurs in our capitalistic world, but at least we still have that capitalism. After the ashes of the mess that is our current model for doing these businesses cools, then new models will quickly rise that are smarter and more relevant. A year or three of contraction will be followed by a new order ... and most of those responsible for the bad business will be gone. From the bankers who looked the other way when home loan applicants misrepresented their incomes, the business leaders who somehow believe that 2 plus 2 equals 22, to the UAW members who think they are 'entitled' to their jobs at a time when the products they build clearly are not selling; within a short few years our country would be stronger and better after a resurrection of a better business culture. Our country is far different from the USA of the 1930's. We would rebound and emerge better and stronger (just like we did in the 1940's).

Or, should we reward failure and ask present and future generations to pay for it?

Maybe we should give the billions to the banks and the automakers who are NOT struggling. They didn't paint themselves into corners or build boats in their basements. They would become stronger and more dominant, creating jobs and supplying services that the majority of Americans already find more desireable compared to those of the losers who need the bailouts. If we continue to throw good money after the bad, most of us won't be able to afford to go to a bank, nor buy a new car.

There's a Bull Lurking

Yep ... there certainly is a lot of bull lurking in this one.

Auto Industry Watch: You Can't Get Different Results Doing the Same Thing

Billions for the banks, that made questionable or even shady loans ... ?

Billions for the Big 3, who make products that a significant number of Americans don't want to purchase ... ?

What if you don't own a home? What if you don't have a new car? Tell us again, just exactly why should we bail out the folks who do ...

Our grandchildren will still be paying for the so-called bailouts, that reward failure and make irrelevant any reference to our system as being capitalistic. From the bankers who chose to look the other way as loan applicants misrepresented their incomes, to the executives of the Big 3 companies who would propose to us that 2 plus 2 equals 22, to the UAW workers who for some reason actually belive they are entitled to their jobs even though they build vehicles that are clearly not selling; we should let the house of cards fall. The economic repercussions would be harsh and broadly felt. Retailers would sell less. Services would be restricted. Business across a wide spectrum would succumb.

The difference would be, that in a year or three, what rose from the ashes of the failed system would be stronger and better. The people who are responsible for that bad business would be gone, for the most part, and we would still have capitalism. Our country's and the world's economies are fundamentally different that what exisited in the 1930's. We would emerge more quickly, and stronger than ever (just like we did in 1940's). For a short year-to-three, all of society would pay a steep price, and the ordeal would be over. At this time we are 'rounding the bend on a trillion dollars of 'bailout' which has bought us absolutely nothing. In a few months, everyone will agree that we are exactly where we started. Generations will be stuck paying the bill for galactic failure.

Everywhere we hear the alarmists proclaim, "We can't sit back and simply do nothing." I agree. We should be giving our precious billions to the banks that DIDN'T fail. We should be giving billions to Honda, Toyota, Nissan, and the like. Instead of rewarding bad business, we should encourage business models which are staying ahead of their respective games. They would thrive and grow. Jobs would expand. Taxes would be paid. Products and services would improve for all of us.

Otherwise we will continue throwing good money after the bad, and before long the majority of Americans will not be able to buy cars, or need the banks.

Let's Hope the Auto Bailout Has Failed for Good

Billions for the financial institutions that practiced questionable lending ...

Billions for the automakers who build products that a significant percentage of the potential market chooses not to buy ...

For the rest of the country, the questions are mounting: What if we don't own a home, or a new car? Tell us again, why we are being asked to prop up the house of cards? Our grandchildren will still be paying for these so-called 'bailouts', which everyone will soon realize bought us nothing. A trillion dollars, to finish right where we started.

If the cards fall, and the people who collectively made the mistakes that led us here are out of the way, and the immediate future for our economy is indeed looking grim. Retailers will sell less. Services will be suspended. A galactic correction occurs in our capitalistic world, but at least we still have that capitalism. After the ashes of the mess that is our current model for doing these businesses cools, then new models will quickly rise that are smarter and more relevant. A year or three of contraction will be followed by a new order ... and most of those responsible for the bad business will be gone. From the bankers who looked the other way when home loan applicants misrepresented their incomes, the business leaders who somehow believe that 2 plus 2 equals 22, to the UAW members who think they are 'entitled' to their jobs at a time when the products they build clearly are not selling; within a short few years our country would be stronger and better after a resurrection of a better business culture. Our country is far different from the USA of the 1930's. We would rebound and emerge better and stronger (just like we did in the 1940's).

Or, should we reward failure and ask present and future generations to pay for it?

Maybe we should give the billions to the banks and the automakers who are NOT struggling. They didn't paint themselves into corners or build boats in their basements. They would become stronger and more dominant, creating jobs and supplying services that the majority of Americans already find more desireable compared to those of the losers who need the bailouts. If we continue to throw good money after the bad, most of us won't be able to afford to go to a bank, nor buy a new car.

Red Friday: Coming to a Mall Near You

To billdrummer

Amen ... as I've said elsewhere, you should be in a good place.

Red Friday: Coming to a Mall Near You

The impact of Circuit City's demise will affect more than just the recently suggested 150 locations. Rumor has it, that Sony is the first of Circuit City's nervous vendors to pull the plug. On Thursday, all Sony trucks destined for CC were told to turn around, and return to Sony with their loads. With such a dominant supplier making that decision, all others will quickly do likewise.

The Red Friday fire sale will be happening at many hundreds of retail shopping areas, all over the U.S. and Canada.