Best Buy competitor files for bankruptcy; also: Travelers ad wins at local award show, and 3M and Ecolab acquire companies

Best Buy rival Circuit City filed for bankruptcy protection this morning. How good is that news for our hometown electronics retailer? Last week, analysts forecast that competitors’ store closings could hurt Best Buy in the short term because it means lots of liquidation sales. The shaky economy will dampen any bump Best Buy might get, but in the long term it looks to be a positive.

More Best Buy: Why is it Circuit City and not Best Buy that’s filing for bankruptcy this morning? writes that “customer satisfaction is a key difference that’s keeping one company steady while the other one falters.” Best Buy has done a better job of predicting what customers want and then catering to those demands, it says.

A Travelers Insurance commercial by Fallon Minneapolis took top honors at a local advertising awards show Friday, Finance & Commerce reports. The 60-second TV spot is called “Risk” and features a man who leaves a trail of destruction as he wanders an empty city. Nearly 1,000 advertising executives attended the event Friday at the First Avenue nightclub in downtown Minneapolis. Watch the ad here:

Wells Fargo put out a call for investors last week, offering to sell 400 million shares of common stock to boost its assets as it buys Wachovia Corp. Some analysts are disappointed with the amount the bank was able to raise, reports. One analyst predicts the bank will need to return to investors again for another round of stock offerings.

3M is freezing salaries for U.S. employees and plans to “continue to chip away” with job cuts, the Pioneer Press reports. The company already eliminated 1,000 positions in the third quarter as it braces for an economic slowdown, the newspaper says. Also: The Maplewood firm has bought a small Norwegian food-safety company, Food Diagnostics AS, which has been a distributor of 3M products for several years.

Another local acquisition: St. Paul-based Ecolab has purchased an approximately one-third stake in Henkel AG, a German detergent maker, Bloomberg reports. Meanwhile, Ecolab says despite the economic outlook, it expects earnings to grow in 2009. CEO Douglas Baker Jr., said in a statement that it expects earnings per share in the range of $1.95 to $2.05.

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Comments (1)

  1. Submitted by Cindy Malony on 11/13/2008 - 09:45 pm.

    Hello, I am so mad about the way best buy has treated us very bad. My TV 42″ Plasma has not turned on in a month and a half. I have made so many phone calls and worked so hard to get a technician it has been unreal. We were lied to and deceived and manipulated into buying this TV because they did not have the one we wanted. The sales man told us to purchase a warranty and if anything like if it fell off the wall, or a baseball went through it they would replace it immediately. WRONG. Now we find out none of that was true. My TV will not turn on now for a month, and now they don’t have the TV we have to replace the one we have. I have added this problem to ripoff report and realized 1,070 people has had bad experiences with Best Buy, I will never recommend them to anyone, also I will contact Attorney General in Illinois to let them know. When I called to get a technician here I was lied to again and was told they would be here on the 14th then spoke to a manager and said that wasn’t true It showed the 19th, This started the beginning of October. I feel this is a horrible way to treat customers. And at this point I am just mad as hell about Best Buy, they shouldn’t even have that name. So I also find out if the tech can’t fix it and I need another TV I have to wait up to 5 days more this is a bunch of crap. And now how can it be replaced with something they don’t even have anymore. Someone from the top needs to contact me or it’s only gonna get worse from here. I will contact every newspaper possible about customer treatment. At this point I don’t even wan’t this one fixed I want to be compensated for what we been through with a better TV. Today a Tech showed up and now they have to order parts and wait for help again. I would prefer this TV be replaced because I never want to go through this trouble again and now the TV we have Best Buy doesn’t carry anymore. We would like a TV for our Thanksgiving dinner. Thanks to best buy we may not. I want everyone to know how we have been treated. They should be in bankruptcy.
    Cindy Malony

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