Circuit City files for bankruptcy

by Deepak Sharma on Monday, November 10, 2008

Big News coming in this morning and it dampens the whole thing by coming just head of the holiday season.

Circuit City files for bankruptcy | U.S. | Reuters

Circuit City Stores Inc, the No. 2 U.S. consumer electronics retailer, filed for bankruptcy protection on Monday just a few weeks before the start of the key holiday shopping season, becoming the largest retailer to file under Chapter 11 this year.

Circuit City fell victim to tighter credit terms from vendors and a loss of market share to Best Buy Co, Wal-Mart Stores Inc and other rivals.

In a court filing on Monday, Chief Financial Officer Bruce Besanko said the retailer filed for Chapter 11 in order to continue its turnaround efforts.

"In large part, a Chapter 11 filing is due to three factors, all of which contributed to a liquidity crisis that prevented the company from completing its turnaround goals outside of formal proceedings: erosion of vendor confidence, decreased liquidity and a global economic crisis," Besanko said.

Update: Below the Circuit City C.F.O.'s Bankruptcy Filing Affidavit.

Circuit City C.F.O.'s Bankruptcy Filing Affidavit

One comment

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by Vincent on 4:08 AM. #