Temares said, "The overall macroeconomic climate remains challenging, which, combined with liquidation sales of a major competitor, negatively impacted our fiscal third quarter."
Last month, shopping-center owner Andrew Segal filed a motion in Dallas federal bankruptcy court to stop a liquidator from expanding a sale in a Fort Worth, Texas, mall he owned. The liquidation was connected to the bankruptcy filing of the country's largest retailer of Western wear, BTWW Retail L.P. The company was liquidating the majority of its 95 stores, including its Fort Worth Boot Town outlet in Mr. Segal's mall.
Mr. Segal said he had spent $40 million to renovate the mall. He converted one of the spaces vacated by a department store into a market where entrepreneurs can offer wares, including several selling Western-style products.
Mr. Segal feared prolonging the liquidation sale by bringing in additional merchandise would hurt tenants during the important Christmas season, and possibly even put them out of business. "To me, it is a pretend going-out-of-business sale when you buy things to put in a going-out-of-business sale," he said.
Lawyers for the liquidator and Mr. Segal came to an agreement earlier this month, but the terms are confidential.
Circuit City's liquidation sales show how consumers can be drawn despite sometimes higher prices.
"It's funny that we've had so much more business since we announced we were going out of business," said Henry Cooper, a salesman at a Dallas Circuit City store, one of 154 the company is closing. "But many of these items have been much cheaper at various times before the sale." A 42-inch Sony LCD high-definition television recently selling at a 30% discount for $959.99 was $100 less weeks before, Mr. Cooper said. Now in the sale's fourth week, Circuit City has increased the markdowns.
Still, librarian Mary Norman said she spotted a Denon stereo receiver Thursday she thought was a good deal at a Parker, Colo., Circuit City. It was marked down 40% to $329.99. But when she called her fiancé to say she was going to buy it, he searched on Amazon.com and found a new one for more than $50 less -- $279.32 with no shipping charges or sales tax.
Merchandise pricing at stores that are going out of business is controlled by the liquidator, said Circuit City spokesman Bill Cimino. "We think it is a rare situation when a lower price than ours can be found elsewhere," said Hilco's Mr. Kaye.
