Thread: Control of Circuit City purchased by Mexican Salinas Group

A controlling stake of the Circuit City chain has just been purchased by the Salinas Group headed by Ricardo Salinas Pliego. There is no relation between Ricardo Salinas Pliego and Carlos Salinas de Gotari. The central part of the Salinas Group is a large consumer electronics chain in Mexico which is similar to Circuit City but which sells most merchandise on time payment at rates similar to Anmerican "rent to own". Salinas Group has diversified in Mexico by buying the Azteca Television network and setting up a bank with branches in it's electronic stores.

http://www.google.com/hostednews/ap/art ... gD94H287G3

Electronics chain chairman buys Circuit City stake
By MICHAEL FELBERBAUM – 53 minutes ago

================================================== ========

RICHMOND, Va. (AP) — A Mexican billionaire who controls a chain of electronics stores in Latin America now holds a 28 percent stake in Circuit City Stores Inc., which is under bankruptcy protection.

Ricardo Salinas Pliego, who is on Forbes magazine's list of the world's richest people, owned more than 47 million shares of the nation's second-largest consumer electronics retailer as of Nov. 14, according to documents filed with the Securities and Exchange Commission late Monday.

He bought 30.3 million shares of Circuit City at average prices ranging between 22 cents and 26 cents apiece, days after the Richmond-based company filed for Chapter 11 bankruptcy protection last week, according to the documents.

The transaction raised Salinas' stake to 47.2 million shares, making him the company's largest shareholder based on outstanding share figures listed on Circuit City court documents.

It wasn't immediately known when the other 16.8 million shares were purchased because no previous filings for beneficial ownership exist. Salinas has not yet filed the SEC form required of those who hold more than a 5 percent stake in a company.

Circuit City spokesman Bill Cimino had no comment on the transaction. A spokesman for Salinas did not immediately comment because Monday was a holiday in Mexico.

Facing pressure from its vendors and from consumers who aren't spending, Circuit City filed for Chapter 11 bankruptcy protection last week and cut more jobs. The company, which has posted losses for seven of the last eight quarters, plans to keep operating while it develops a reorganization plan to deal with significant declines in traffic and heightened competition from rival Best Buy Co. and others.

Circuit City listed HBK Investments as its largest shareholder with an 8.7 percent stake in court filings. Its next largest shareholders were listed as First Pacific Advisors and Mark Wattles with 7.4 percent and 6.5 percent respectively.

Salinas' fortune comes from television, retail and cellular businesses. He controls Grupo Elektra, with electronics, appliance and furniture stores in Mexico and Latin America; TV Azteca SA, Mexico's No. 2 broadcaster; and Banco Azteca, one of Mexico's largest microlenders.

Associated Press Writer Julie Watson in Mexico City contributed to this report.
Hosted by Copyright © 2008 The Associated Press. All rights reserved.

I'll make sure not to buy anything at Circut City!

Same here!

ditto... pass the word.

The American consumer has proven time and again as long as the price is right an the credit is easy they will buy from anyone, stuff made anywhere.

Companies that hire illegals and support La Raza or commies from red China. Oil from countries that support terror or just good ole Wal mart.

We keep sending our dough out of the country and then get angry about
an off shore investor buying up distressed US based employers, at least they avoid closing and everyone losing there jobs.

I wont be shopping there. Circuit City translated: ciudad del circuito

Circuit city had already closed most of their stores and let workers go how much do you want to bet that none of them will be offered their jobs back.

Originally Posted by Rebelrouser

Circuit city had already closed most of their stores and let workers go how much do you want to bet that none of them will be offered their jobs back.

Mexicans will only hire mexicans..no EOE enforcement for them either.

Please provide a link to this information.

I actually hope that there will be electronic assembly in Mexico instead of China. With more jobs there more Mexicans laborers will stay home. There would be less temptation to break our immigration law if there were jobs there. Perhaps the purchase of Circuit City will lead to seeing made in Mexico on the items for sale there.