Circuit City files for bankruptcy

By on November 10, 2008, 9:31 AM
Merely a week after closing down 155 retail stores in 28 states and announcing plans to cut around 17% of its staff, Circuit City has filed for chapter 11 bankruptcy protection and obtained a $1.1 billion credit lifeline to battle a sharp decline in sales. The retailer said it’ll continue operating “without interruption” as management focuses on developing and executing a comprehensive corporate restructuring plan.

The credit replaces Circuit City’s current asset-based credit facility and will provide additional immediate liquidity to pay vendors and other suppliers while the company reorganizes. No additional store closings were announced, but the company did say it will eliminate some 700 more positions in an effort to cut costs. Circuit City's Canadian operations will also be seeking bankruptcy protection under the Creditors Arrangement Act in the country.

User Comments: 1

Got something to say? Post a comment
viperpfl said:
It's not surprising and is glad the company is going under. This is a company that has shady business tactics from the start. They always pushed there warranties but the warranty was only as good as the paper it was printed on. All you have to do is do a Google search and there will be hundreds of complaints. The let all there good employees go because they said they made to much money and now they are left with less than desirable employees who know nothing or care about customer service. I had bought a mp3 player from them awhile back and I had gotten a year warranty for it because they said if it breaks, they will fix or replace it. About 6 months after buying it the headphone jack broke and couldn't listen to any music. I called up Circuit City to have it fixed and told them what the problem was. The lady I spoke with said they wouldn't fix it because the headphone jack was considered cosmetic. I told her even if you can't listen to any music and she said yes. Circuit City had my money but I ended up with a paper weight. Circuit City is only good at a liquidation sale
Load all comments...

Add New Comment

TechSpot Members
Login or sign up for free,
it takes about 30 seconds.
You may also...
Get complete access to the TechSpot community. Join thousands of technology enthusiasts that contribute and share knowledge in our forum. Get a private inbox, upload your own photo gallery and more.