NEW YORK (CNNMoney.com) -- Circuit City Stores Inc., the No. 2 electronics seller, filed for bankruptcy protection Monday, thus becoming the latest retailer hurt by a worsening economic downturn. According to the company's Chapter 11 filing with the U.S. bankruptcy court in Richmond, Va., Circuit City (CC, Fortune 500) will continue to do business and pay its workers while it restructures debt and its business operations. Just last week the Richmond-based company announced that it would close another 150 stores and cut about 17% of its domestic workforce as it continues to face eroding sales at its stores. The company said it has negotiated a commitment for a $1.1 billion "debtor-in-possession" (DIP) revolving credit facility to supplement its working capital. The company said the DIP credit will replace the company's $1.3 billion asset-based credit facility provided by its lenders. "We recently have taken intensive measures to overcome our deteriorating liquidity position," James Marcum, Circuit City's acting president and chief executive officer, said in a statement. "The decision to restructure the business through a Chapter 11 filing should provide us with the opportunity to strengthen our balance sheet, create a more efficient expense structure and ultimately position the company to compete more effectively," he said. http://money.cnn.com/2008/11/10/news/companies/circuit_city/index.htm?postversion=2008111008
Holy sh*t, they actually gathered up enough cash to declare bankruptcy? By the way, there are quite some sales going on there. Great deals on computers and laptops.
IF this comes to a surprise to anyone you have to be an idiot. This was going to happen eventually, there are plenty more retailers that are going to file bankruptcy. Here is my comment from 2006: S2007S Registered: Aug 2006 Posts: 7536 12-19-06 03:56 PM circuit city will be lucky to be around in 5 years. Ever shop at on of their stores. I dont know how they survive, everytime I walk into a CC I feel like its me and the employees. CDs and DVDs are a thing of the past that no retailer can rely on, sales of big screeen tvs which are still doing well I think will eventually slow down. CC will eventually be bought out or end up closing up.
Or Shitty City Somehow, they are easy to hate, their bankrupcy doesn't really pull on my heartstrings. I went once there and bought 100 blank DVDs on special.
buying shares for 11 cents may be smart see "trade like a hedge fund" by altucher for details on this tactic.... surf
Yeah you can pull up the posts. When that slimy CEO announced his genius initiative, the stock got dumped and there were plenty of posts that he just killed the company. Whoever is still dumb enough to be a serious position in Circuit City should at least sue the CEO for his very obvious decimation of the company.