Circuit City files for bankruptcy
(Credit: Circuit City Stores / Richard Cadan Photography)Struggling electronics chain Circuit City announced Monday that it has filed for chapter 11 bankruptcy.
Chapter 11 allows a company to hold off creditors while it attempts to restructure its finances. Circuit City said Monday that it has negotiated a commitment for a $1.1 billion debtor-in-possession revolving credit facility to supplement its working capital.
Circuit City announced earlier this month that it would shutter 155 stores and lay off 17 percent of its workforce. The retailer said Monday that it will eliminate an additional 700 positions in addition to the reductions resulting from the store closings, bringing the total layoff projection to around 20 percent of its employees. According to the company's FAQ, in February it had approximately 45,900 employees, not including workers taken on during peak selling periods.
"We appreciate the support we have received from our lenders in the midst of such a tight credit market," acting CEO and vice chairman James A. Marcum said. "With this support, we believe we have the opportunity to leverage our market position and the strength of our brand to restore Circuit City to solid financial footing."
See also: "For Circuit City, holidays not looking happy."
Margaret is news editor for CNET News, based in the Boston bureau. She also oversees the CNET Blog Network. E-mail Margaret.
And the wizard store planners who thought that a CC right outside a Costco was a GOOD idea deserve to be unemployed!!!
Then again, what do I know? I'm just a idyot.
==Circuit city sells tons more variety than a Costco does. Costco is doing well because they have not built too many stores and overextended themselves with debt upon debt.
===Yes the noise in most of them is horrible but it is even worse in Best Buy: officially in NY BB stores EVERY audio device and TV has to be on with sound playing. For a audio retailer of high end lines BB has THE WORST PA systems: systems that would be great in a factory or in a ship yard.
What you talk about is liquidation, which is chapter 7 of the bankruptcy code.
Thank you Al Gore for the Internet!!! Sorry Circuit City. I guess my internet shopping has let you down just like Egghead and CompUsa. :(
Unfortunately, they have decided to resort to ultra-intrusive internet ads that try to "steal" clicks by unpredictably popping out of their borders and blocking the webpage, often times with undefined borders so you can't actually see where it's covering the webpage.
That's probably not the kind of image that's going to get you business, Circuit City. In fact, because of those ads and the times I've ended up at Circuit City's website after trying to click on another link as its ad popped out and "got me", I refuse to shop at CC.
I realize companies need to advertise, but there's a limit.
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by vkri2
December 16, 2008 4:32 AM PST
- I always hate to see folks lose thier jobs. It's all a part of the American capitalist way, I guess.
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