Circuit City closing down 150+ stores in midwest (and now all of the stores) (1 Viewer)

[DaveF]

It's a money grab, but it also makes sense. Anyone with any skills are fleeing CC like rats from a sinking ship, looking for new work and 154 of them are are the executives. If they leave, there's no way CC can hire and replace them for the few months the company has left. And if a large number of them leave right now, it could potentially severely damage the final liquidation of the company.

But I have no idea how likely the talent-flight is: where will they go? What companies are hiring top talent now? And of the top 16 to share the biggest chunk of $2.3M, how necessary are they to these last few months? They're the jokers who killed CC, so are they really so talented in winding it down?

 

[Mike Frezon]

You would think you wouldn't need to keep top company officials on-the-job after they've run the company into the ground. You would especially think you wouldn't then need to pay them more to get them to stay for the clean-up duty.

There are a lot of things about business I don't understand.

 

[Dennis Nicholls]

An average $143K bonus to the executives - payable only if they meet some targets - doesn't sound excessive to me. And the $1.62 million pool won't go far spread around a group of non-managerial workers. It might be paid on specific help such as outplacement help and COBRA.

 

[Edwin-S]

First they get rewarded for destroying the Company and now they will get rewarded for shutting it down. What a system the managerial elite have created for themselves. They win, no matter how they run a company. Run it well or run it poorly....who cares...they still come out ahead.

 

[gene c]

I don't understand this either. But then again, I don't have the knowledge or intelligence that would allow me to.

If I were on the Board Of Directors, I would have have lined up some retired executives in advance to sweep the floors and turn out the lights, then fired all those CC guys ten minutes after I announced the store closings. But then again, I re-direct you to my first paragraph.

However, I worked for Webvan for a year and a half (great job, loved every minute of it). They shut down in July of '01 and they still haven't finished the bankruptcy proceedings. I received my final check about a month ago. So obviously there's more to this than we know. But still....

 

[DaveF]

You need the people to continue the daily business and wind down the business. The sudden exit of 100+ executives would prevent that.

 

[Mike Frezon]

I thought people were brought in from the outside when things moved to liquidation.