What Happened to Circuit City?

Circuit City grew from a small Richmond, Virginia shop (founded 1949) into one of America’s best-known big-box electronics chains. By the 1980s–1990s, its red-trimmed superstores and circular drive-thru pickup lanes were weekend staples for TVs, VCRs, car audio, and PCs. The company experimented with service offerings (eventually branded Firedog) and benefited from the home-theater boom, yet retail dynamics shifted: Best Buy’s low-pressure showrooming, Walmart’s pricing power, and e-commerce eroded Circuit City’s advantages.

Strategic missteps compounded the pressure. Store relocations left gaps in prime trade areas; appliance exits reduced traffic; and in 2007 the chain laid off ~3,400 experienced sales associates to cut costs—saving payroll, but hurting service and conversion. The 2008 financial crisis crushed discretionary electronics demand and tightened vendor credit. Circuit City filed Chapter 11 in November 2008; efforts to reorganize or find a buyer fell short. In January 2009 the company moved to liquidate, and by March 2009 the last stores closed.

The Circuit City name later reappeared online under different ownership, a reminder of the brand’s recognition even after its brick-and-mortar exit. Its rise and fall trace the arc of U.S. electronics retail—from commission sales floors and Sunday inserts to price transparency, omnichannel logistics, and relentless competition on convenience.