Oh! I have slipped the surly bonds of Earth
And danced the skies on laughter-silvered wings;
Sunward I’ve climbed and joined the tumbling mirth of sun-split clouds, – and done a hundred things
You have not dreamed of wheeled and soared and swung
High in the sunlit silence. Hov’ring there,
I’ve chased the shouting wind along, and flung
My eager craft through footless falls of air…
Up, up the long, delirious, burning blue
I’ve topped the wind-swept heights with easy grace
Where never lark, nor eer eagle flew –
And, while with silent lifting mind I’ve trod
The high, untrespassed sanctity of space,
Put out my hand and touched the face of God.
– John Gillespie Magee, R.C.A.F
Now that we’ve set the mood, we regret to inform you that reports of Circuit City’s demise have been greatly exaggerated. They are still afloat, albeit pretty much dead-in-the-water. Even the rats have been seen abandoning ship. See our previous posts here and here, about the darling of the electronics retailing world.
Management at Circuit City is bailing water, but their ship is sinking. Amazingly, there are many people with a stake in Circuit City (such as the shareholders) who actually believe they can convince a potential suitor that the schooner Schoonover has some market value left (see “A (Fire) Sale For Circuit City?” – Business Week, June 24, 2008).
We think they should scuttle the ship.
Who in their right mind would pay a dime for Circuit City? In our opinion, the only value that remains is the inventory on their shelves. Circuit City is drowning in a sea of red ink (we couldn’t resist one final nautical reference). Same store sales were down 12% for the latest quarter, compared to a year ago, and they lost another $165 million. A liquidation sale would be the best and fastest solution to recoup at least some shareholder value.
We’re amazed Circuit City Stores haven’t had the opportunity yet, but they should be able to “touch the face of God” anytime now.
– Routing By Rumor