Monday, November 10, 2008

More Bloggotage On Circuit City's Bankruptcy

I've just been told by an inside source that at the same time that other video vendors like Sony and Toshiba and Sharp (who is only out $7 million, most of which is probably insured) were pulling back from Circuit City, Samsung was very aggressive in offering Circuit City sweet terms in an effort to hoover up market share from the other brands.

Now they’re on the hook for $115 million. Looks like that cunning plan didn’t pan out as well as they might have hoped.

And while I'm on the subject, what where the cowboys in Hewlett-Packard's national accounts office thinking? Looking at the creditor filing, what's startling is how far out in front HP is from everyone but Samsung, which makes me wonder if they had any risk management at all. There's no way that HP's $119 million in receivables is just 90 days current. Did they just think that they could stem the bleeding at CC by throwing product at them?

It makes me wonder how exposed HP is to other large retail partners, and how on top of the timely collecting of their receivables they are.

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1 comment:

Ray said...

My advice to those Circuit City peeps that lost their jobs, hit the jobs boards fast while there are still jobs posted - (professional networking) (aggregated listings) (matches jobs based on your skills)

Good look to those looking for work!