equipment, using custom switch panels and acoustic treatments in an attempt to duplicate a home listening environment and offer fair comparison with an assortment of branded hi-fi gear. Managers were rewarded for maximizing gross profit margins and inventory "turns", which led to frequent out-of-stock situations, often remedied by frequent cross-town inter-store transfers. Each store had a repair shop on site with a part-time technician. Some locations had multiple full-time service technicians. Others had service departments that operated independently of the store but under the same ownership. Stores ranged in size from 2,000 to . By the late 1970s, Lafayette expanded to major markets across the country, struggling to compete with Radio Shack, which was purchased by Tandy Leather Co. in 1963. Lafayette ran into major financial difficulty when the Federal Communications Commission (FCC) expanded a new citizens band radio ("CB") spectrum to 40 channels in 1977. Lafayette's buyers had firm commitments to accept delivery of thousands of older design units capable of only 23 channels, and were not able to liquidate the inventory without taking a serious loss. Eventually, all of the old CB radios were sold for under $40. With fewer than 100 stores, far fewer than the aggressively expanding Radio Shack's thousands of local outlets, Lafayette Radio remained more of a dedicated enthusiasts' store than a mass marketer. The company was also hurt by the advent of electronics retailers relying on aggressive marketing techniques and competitive pricing in the late 1970s. Many experienced managers departed. The company filed for bankruptcy in 1981 and most Lafayette stores in the state of New York closed by the end of the year. Approximately two thirds of company-owned stores were closed immediately. According to one employee, they were "given 48 hours to tear the entire store down, get everything boxed that had a valid and current stock number, and get it on a truck to take it back to Syosset (Lafayette’s Long Island warehouse). Anything that wasn’t on the official inventory sheets was to be discarded". In 1981, Lafayette Radio entered Chapter 11 bankruptcy. Several Lafayette stores were purchased by Circuit City of Richmond, Virginia. Of the 150 stores that Lafayette had once owned, eight stores remained when Circuit City took over. In order to keep the Lafayette name, which was popular in New York, Circuit City changed the store names to "Lafayette-Circuit City". However, these store locations were much smaller than