Sunday, March 8, 2009

Why have businesses failed?

Our economy has been in a downward spiral for the last eight years, and because of that their are stores, companies, and franchises that just havent been tough enough to weather the storm. Businesses in all categories have continuously failed over the past eight years and will continue to fail for the next year or so as we near the end of America's economic downfall.

One such retailer is Circuit City. Circuit City was founded in Richmond by Samuel Wurtzel in 1949 as a TV store. This retailer began losing money when competing retailers started offering televisions and computers at lower prices because of the recession. On November 10 2008 Circuit City filed for bankrupt protection, and on January 17 2009 they began there closing sale which consists of 567 stores. (

Circuit City has failed at all attempts to sell their company. There stocks are worthless and they have left 30,000 employess jobless. ( Circuit City is estimated to have $1.3 billion in inventory which will go to the various companies that won liquidation rights. Best Buy is Circuit City's main competetor and is said to benefit the most from their going out of business.

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