PAGE 4 I THE MEREDITH HERALD | FEBRUARY 4 2009
ECHNOLOGY
GOODBYE, CIRCUIT CITY!
Amber McKinney
Editor-in-Chief
When the economy is rough, people start cutting back on buying things.
People stop going out to eat every week and taking long vacations; (they
start prioritizing what they need to purchase. Businesses are feeling the
penny pinch, and stores-devoted solely to electronics are no exception. In a
time of economic crisis, you don’t just go to Best Buy or Circuit City and
buy DVDs and CDs by the handfuls or pick up the newest game console or
buy the coolest camera on the display shelf. While Best Buy seems to be
surviving. Circuit City is no longer able to keep its door open.
According to an article published on January I6th, 2009, in the Triangle
Business Journal, “Circuit City filed for bankruptcy Nov. 10, after post
ing a quarterly loss of $240 million. The same month it announced that
It would close about 20 percent of its 721 stores in the United States.”
Circuit City could no longer afford to run ftill throttle in such a diminished
economic situation. A Circuit City press release that was issued on Nov 3
2008 stated that “[d]ue in part to its deteriorating liquidity position and the
contmued weak macroeconomic environment, the company has decided
to lake certain restructuring actions immediately, including closing 155
domestic segment stores, reducing future store openings and aggressively
renegotiating certain leases.” The press release underlined the impacl of
the poor economy on their reasons for closing stores, citing “a significantly
weakened retail environment,” “the sharply worsened overall economic
environment,” and “the weakened economic environment” as the cause of
most of the company’s problems. The fxill press release can be located at
http://investor.circuitcity.com/releasedetaiI.cfm ?releaseid=344747.
However, closing 155 stores, restricting new store openings and rene-
gotiating leases did not keep Circuit City From going under. On January
16th, Circuit City published another press release to announce that it was
liquidating, which essentially means that it’s closing. If you attempt to visit
the Circuit City website like I did, you will be met with a very sparse web
site that informs you that they are going out of business. “Closed” is even
included in the website address: http://www.circuitcily.com/closed.html.
James A. Marcum, vice chairman and acting president and chief executive
officer for Circuit City Stores, Inc., mentioned in the press release that Cir
cuit City has (or had) “more than 30,000 employees.” That’s 30,000 more
people out looking for jobs while the economy shows little to no siens of
getting better.
Photo cowtesy 866fi»lighl.com
When mega-stores like Circuit City start going under, we start to wonder
about what s next. Barnes and Nobles? Old Navy? Wal-mart? The last one
IS unlikely, but it is almost certain that we will see other big name stores
going under during this period of weak economy. At least we can look for
ward to the close-out discounts and sales. ■
MILITARY ECONOMY
Anna Clark
Staff Writer
Lately everyone has been talking
about the economy and how it has
affected students, who have had to
change their spending habits and cut
back on budgets. Students at Mer
edith College can be heard talking
about how going to a private school
on top of the economic downfall
is affecting their family and about
how their families’ lifestyles have
changed. Both my brother and I go to
private colleges. We both have cars
and both still get a certain ainounl
of money from our parents to help
out with living expenses. When
J went home over winter break, 1
saw little to no dilTerence in my
family’s standard of living because
my dad is employed by the United
States Anny.
My dad has been an ofllcer in the
Army for over 20 years. The great
thing about this fact is that the mili-
tai-y takes care of its own. Military
personnel are provided with hous
ing on a military base OR payment
for housing elsewhere. Included in
housing are electricity and water.
The military also provides health
and dental coverage for all military
personnel and their dependents. On
top of all of these perks, the mili
tary also pays their employees a
fairly decent salary, and if soldiers
arc deployed to a combat zone, their
salaries are not taxed. All of these
benefits make military life ideal in
limes of economic crisis.
My family and I are extremely
lucky to have all of these perks, as
are many military families. Not aJl
military families are as lucky as
my own. Some still have financial
issues through bad investments or
lack of foresight. But the great thing
about the military is that it allows
people to have jobs and support their
families without too much worry for
the future. The great thing about
the military is that it takes care of
its own. ■
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