How a Company Dies

Jeff Bertolucci explains in PC World magazine.

While a dreadful economy contributed to its downfall, Circuit City's real problem was getting stuck with bad management that ultimately drove the company out of business.

Let's backtrack a bit. Back in March 2007, Circuit City fired more than 3,400 experienced sales people and other staffers simply because they were making too much money. Management then hired inexperienced, lower-paid workers to take their place. Bad move.