Circuit City 1997 Annual Report Download - page 9

Global intends to stock the majority of its products, management believes it will have a significant advantage over most of its direct mail
competitors in the United Kingdom.
There can be no assurance that the Company will be able to maintain or improve its current competitive position with respect to any of these or
other competitive factors.
EMPLOYEES
As of December 31, 1997, the Company employed a total of 2,792 employees, including 2,554 full-time and 238 part-time employees, of
whom 2,137 were in North America and 655 were in Europe.
None of the Company's North American employees is represented by a labor union, except for approximately 60 warehouse and assembly
employees in New York who are covered by an "open-shop" agreement with the Company, which expires at the end of 1998. These employees
are not required to join the union. In Europe, union membership and affiliations vary by country. In general, the European unions tend to be
national, rather than local, in scope and are industry specific.
The Company considers its relationships with employees to be good and has not experienced a work stoppage in 22 years.
ENVIRONMENTAL MATTERS
Under various national, state and local environmental laws and regulations in North America and Europe, a current or previous owner or
operator (including the lessee) of real property may become liable for the costs of removal or remediation of hazardous substances at such real
property. Such laws and regulations often impose liability without regard to fault. The Company leases most of its facilities. In connection with
such leases, the Company could be held liable for the costs of removal or remedial actions with respect to hazardous substances. Although the
Company has not been notified of, and is not otherwise aware of, any material environmental liability, claim or non-compliance, there can be
no assurance that the Company will not be required to incur remediation or other costs in connection with environmental matters in the future.
FINANCIAL INFORMATION ABOUT FOREIGN AND DOMESTIC OPERATIONS
See "Geographic Information" contained in Footnote 10 to the financial statements.
ITEM 2. PROPERTIES.
The Company's primary facilities, which are leased except where otherwise indicated, are as follows:
ITEM 3. LEGAL PROCEEDINGS.
The Company is a party to various legal actions arising out of the normal course of business, none of which is anticipated to have a material
adverse effect on the Company's financial position or results of operations.
On March 9, 1998 the Company filed suit in U.S. District Court (Eastern District of New York) against a bankrupt supplier and its lenders
seeking monetary damages for breach of contract and warranty as well as a declaration that the Company has certain legal and equitable rights
APPROX EXPIRATION
FACILITY LOCATION SQ. FT. OF LEASE
Headquarters, Sales and
Distribution Center, Catalog
Operations(1).............................Port Washington, NY 178,000 2007
Sales and Distribution Center(1)............Suwanee, GA 130,000 1999
Sales and Distribution Center...............Compton, CA 140,000 2007
Sales and Distribution Center...............Naperville, IL 241,000 2010
Sales and Distribution Center...............Holmdel, NJ 51,000 1999
Sales and Distribution Center...............Markham, Ontario 45,000 2005
Sales and Distribution Center...............Verrieres le Buisson, France 24,000 2000
Sales and Distribution Center...............Dreieich, Germany 55,000 2000
Sales and Distribution Center...............Madrid, Spain 35,000 2 months notice
Sales and Distribution Center...............Milan, Italy 80,000 1999
Sales and Distribution Center...............Greenock, Scotland 78,000 owned
Sales and Distribution Center...............Wellingborough, England 38,000 2013
Sales Center and Catalog Operations.........Miami, FL 32,000 2000
Sales Center................................Amstelveen, Netherlands 5,000 2000
Assembly, Sales and Distribution Center.....Fletcher, Ohio 185,000 owned
European Headquarters.......................Uxbridge, England 7,400 2005
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(1) Facilities leased from related party. See "Certain Relationships and
Related Transactions--Agreements-- Leases and Related Guarantees."