I don't get how you aren't comprehending this. You are comparing a retail store to a manufacturer. They are not the same! Why do people buy Ford's instead of Toyota's? Why do they buy Samsung TVs instead of Sony? Its because of the brand, not where they bought it. A Samsung TV sold at Best Buy is the exact same as one sold at Circuit City. A Ford is NOT the same as a Toyota, no matter where its sold. Do you get that? You're comparing apples to oranges here.
Your example would work if Circuit City not only sold electronics, but manufactured them as well. That is what car companies do, they manufacture and sell. If the production goes down, supply goes down, right? See, in a free market, savvy business people find where there is less supply, and find a way to increase it. This is called competition. They want a piece of the market share. You assume no other cars would be manufactured, because simply "ramping up production" as you put it, doesn't mean a factory can double its production. What happens when they open up a new factory to handle the demand? Oh yeah, they'll HIRE PEOPLE.
Again, please find an example of a company that produced a good chunk of the goods in its industry, that went bankrupt, and no other companies filled the void. I'll wait
I don't get what you want links to. You think people followed around every unemployed CC employee and reported on their job hunting? Its retail, dude, not rocket science. I think its more plausible that they found another retail job, you seem to think that they sat there with their thumbs up their asses.