Circuit City Filing Bankruptcy?
Richmond-based Circuit City is considering shutting down 150 stores and cutting thousands of jobs in an effort to avoid filing bankruptcy.
The 59-year-old consumer electronic retailer has already turned to bankruptcy lawyers. If it decides to file bankruptcy, it will be following in the footsteps of Linens ‘N Things and Sharper Image and would be the largest retailer bankruptcy filing in several years.
As of August 31, 2008, Circuit City employed 45,000 people and had 714 stores in the United States, with 772 stores and dealer outlets in Canada.
The Wall Street Journal said the main contributor to Circuit City’s financial mess appears to be the declining credit market, which has kept the company from securing debtor-in-possession financing and helps companies in bankruptcy pay for their daily operations.
Tags: Circuit City, filing bankruptcy, job cuts
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