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For fifty years, Circuit City was the store where America bought its televisions. Founded in Richmond, Virginia in 1949, it grew into the number-one electronics retailer in the country — the red-signed superstore where a whole generation bought their first VCR, their first camcorder, their first big-screen TV, sold to them by commissioned salesmen who actually knew every product on the floor. Then, in the spring of 2009, it vanished: 567 stores dark, more than 34,000 people out of work, gone in a matter of weeks.
This is the rise and fall of Circuit City — and how it destroyed itself from the inside. The company that accidentally built CarMax, a used-car giant now worth far more than Circuit City ever was. The company that bet a fortune on DIVX, the disposable 48-hour DVD that America hated and that burned roughly $114 million in a single year. And the single decision that has become a business-school cautionary tale: in March 2007, Circuit City fired 3,400 of its best, highest-paid salespeople to save about $45 million a year — and lost the only advantage it had left.
If you remember Saturday trips to the store, the wall of glowing TVs, and the salesman who knew his stuff, this one's for you.
📺 Watch next — The Tragic End of Prodigy: The Internet Pioneer That Put America on the Web and Vanished Forever.
🔔 Subscribe for one fallen American giant brought back to life every week.
Top sources:
History of Circuit City Stores, Inc. — FundingUniverse: https://www.fundinguniverse.com/company-histories/circuit-city-stores-inc-history/
Circuit City Cuts 3,400 'Overpaid' Workers — The Washington Post (2007): https://www.washingtonpost.com/archive/business/2007/03/29/circuit-city-cuts-3400-overpaid-workers/a67a22c6-0416-4a50-9a40-398a0bf85a02/
Circuit City Lays Off Employees for Earning Too Much Money — ABC News: https://abcnews.go.com/GMA/story?id=2994476
DIVX — Wikipedia: https://en.wikipedia.org/wiki/DIVX
CarMax — Wikipedia: https://en.wikipedia.org/wiki/CarMax
Additional sources:
Circuit City: How the Once Mighty Have Fallen — Audioholics: https://www.audioholics.com/editorials/circuit-city
US: Circuit City fires 3,400 better-paid store workers — WSWS: https://www.wsws.org/en/articles/2007/03/circ-m30.html
This channel is made by an enthusiast who loves business and technology history — nothing more. All videos are for educational and entertainment purposes only and reflect my personal views and interpretations. I research each story carefully using publicly available sources, but errors or omissions can happen. Nothing here is professional, financial, or legal advice, and this channel is not affiliated with, endorsed by, or sponsored by any company mentioned.
https://www.youtube.com/channel/UCb0ps9eCp0y6yP1Xg4sDDFw?sub_confirmation=1
For fifty years, Circuit City was the store where America bought its televisions. Founded in Richmond, Virginia in 1949, it grew into the number-one electronics retailer in the country — the red-signed superstore where a whole generation bought their first VCR, their first camcorder, their first big-screen TV, sold to them by commissioned salesmen who actually knew every product on the floor. Then, in the spring of 2009, it vanished: 567 stores dark, more than 34,000 people out of work, gone in a matter of weeks.
This is the rise and fall of Circuit City — and how it destroyed itself from the inside. The company that accidentally built CarMax, a used-car giant now worth far more than Circuit City ever was. The company that bet a fortune on DIVX, the disposable 48-hour DVD that America hated and that burned roughly $114 million in a single year. And the single decision that has become a business-school cautionary tale: in March 2007, Circuit City fired 3,400 of its best, highest-paid salespeople to save about $45 million a year — and lost the only advantage it had left.
If you remember Saturday trips to the store, the wall of glowing TVs, and the salesman who knew his stuff, this one's for you.
📺 Watch next — The Tragic End of Prodigy: The Internet Pioneer That Put America on the Web and Vanished Forever.
🔔 Subscribe for one fallen American giant brought back to life every week.
Top sources:
History of Circuit City Stores, Inc. — FundingUniverse: https://www.fundinguniverse.com/company-histories/circuit-city-stores-inc-history/
Circuit City Cuts 3,400 'Overpaid' Workers — The Washington Post (2007): https://www.washingtonpost.com/archive/business/2007/03/29/circuit-city-cuts-3400-overpaid-workers/a67a22c6-0416-4a50-9a40-398a0bf85a02/
Circuit City Lays Off Employees for Earning Too Much Money — ABC News: https://abcnews.go.com/GMA/story?id=2994476
DIVX — Wikipedia: https://en.wikipedia.org/wiki/DIVX
CarMax — Wikipedia: https://en.wikipedia.org/wiki/CarMax
Additional sources:
Circuit City: How the Once Mighty Have Fallen — Audioholics: https://www.audioholics.com/editorials/circuit-city
US: Circuit City fires 3,400 better-paid store workers — WSWS: https://www.wsws.org/en/articles/2007/03/circ-m30.html
This channel is made by an enthusiast who loves business and technology history — nothing more. All videos are for educational and entertainment purposes only and reflect my personal views and interpretations. I research each story carefully using publicly available sources, but errors or omissions can happen. Nothing here is professional, financial, or legal advice, and this channel is not affiliated with, endorsed by, or sponsored by any company mentioned.
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