DESK 2 — FILE OPEN
FOLDER C-0308CASE #2009-0308SHELF 4 / ROW C
CLOSED
BUREAU OF COMMERCIAL DEATHS
DIVISION OF COLD CASES / FORM 41-D / DEATH OF A GOING CONCERN
CASE NUMBER
CASE #2009-0308
SUBJECT
CIRCUIT CITY STORES
DATE OPENED
1949 — Richmond, Virginia
DATE CLOSED
March 8, 2009
KNOWN ALIASES
CC (NYSE); formerly Wards Company
INVESTIGATOR
Det. Redact
CAUSE OF DEATH
Subject dismissed 3,400 of its highest-performing sales staff in order to reduce wage expense.
PEAK VALUATION
$9,600,000,000 (2000)
ASSETS RECOVERED
567 stores liquidated; 34,000 employees released; name licensed
CLASSIFICATION — MARK ONE
FRAUD
✕NEGLIGENCE
HUBRIS
MARKET FORCES
UNKNOWN
EVIDENCE SUMMARY
Terminations were executed in March 2007 and the positions refilled at lower rates of pay.
Customer satisfaction and average sale declined in the following quarters.
Subject filed for liquidation twenty-three months after the reduction.
Remainder of statement sealed:
FILED BY Det. Redact · BADGE 0001NO FURTHER ACTION AUTHORIZED
PROPERTY OF THE BUREAUDO NOT REMOVE FROM ROOM 0114
MARGIN NOTE — INVESTIGATING OFFICER
They dismissed the people who knew things. Filed under negligence. I would prefer a stronger heading.
The wage line went down. Everything else went with it.
EVIDENCE TAG
ITEM C-0308
SUBJECT CIRCUIT CITY STORES
RECEIVED 2009
CONDITION AS FOUND
SUBJECT CIRCUIT CITY STORES
RECEIVED 2009
CONDITION AS FOUND