The rise and fall of circuit city

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  The Rise and Fall of Circuit City The Richmond-based retailer became wildly successful — and then disappeared. 32 E CON F OCUS | THIRD QUARTER| 2013 expansion strategy and nearly went bankrupt in 1975. But led by Wurtzel’s son Alan, who had become CEO in 1972, the

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  Circuit City is also one of American retailing’s great fail-ures. In November 2008, the 59-year-old company filed for bankruptcy. Within months, it closed its stores and liquidat-ed more than $1 billion worth of merchandise, and on March 8, 2009, the last Circuit City store turned off its lights for good.

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  Rise and fall, page 2 INTRODUCTION This case covers the time period in Circuit City’s history between the decision of CEO Alan McCollough to halt the sale of appliances in 2000 and the decision of CEO Philip Schoonover to lay off 3,400 employees in 2007. The case also highlights the importance of

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  Wulf, a former Circuit City manager and trainer who directed the 2010 documentary A Tale of Two Cities: The Circuit City Story. “We were basically pushing our customers out the door, saying we don’t want to sell to you anymore.” In 2003, Circuit City finally decided to eliminate its com-missioned sales force. In one day, the company fired ...

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  Rise and fall, page 2 INTRODUCTION This case covers the time period in Circuit City’s history between the decision of CEO Alan McCollough to halt the sale of appliances in 2000 and the decision of CEO Philip Schoonover to lay off 3,400 employees in 2007. The case also highlights the importance of

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