Why? Warranty service (while laughable in and upon it's self) is conducted through a third party.
This happened to me when Highland Super Stores (remember them?) went out of business back in the early 90's. I had to do a 60 minute road trip across town for service. When I asked for my service plan money back, they laughed and suggested I take a bankrupt company to court.
I laughed back and told them to enjoy being jobless.
I actually liked Circuit City better than Best Buy. Best Buy used "Eminent Domain" to remove homes and businesses to build their new headquarters in Richfield, Minnesota. I have problems giving money to a company like that.
I knew Circuit City was in trouble when they fired all of their floor staff making $10+/hr. The were told they could be rehired at $8/hr. I don't remember the company big shots taking a pay cut.