Posted on November 10, 2008,

Circuit City Files for Bankruptcy Protection

Gaming Today

Struggling electronics retailer Circuit City today filed for Chapter 11 bankruptcy protection (yes, Chapter 11, like 1UP parent company Ziff Davis Media filed for earlier this year), according to Reuters. The announcements comes just a week after the company announced it would be closing 155 stores due to the economic downturn, among other factors.

In the filing, Circuit City CFO Bruce Besanko explained the move: “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.”

It’s been an absolute whirlwind of bad news recently — Gizmodo recently reported that Sony stopped shipments of their products while they were in transit to distribution centers and had them returned “among worries that Circuit City couldn’t pay for the shipments.” That remains an unconfirmed rumor, but it wouldn’t seem out of place among the rest of the bad news that’s gone on. Hopefully they pull through this; besides, where else will you go to pay to have free updates installed? Not to mention the fact that it would, y’know, put people out of work.

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4 Comments on Circuit City Files for Bankruptcy Protection

ManOfTeal

On November 10, 2008 at 10:41 am

Circuit City is filing for bankruptcy because Best Buy has waxed CC’s ass all over the floor….plain and simple….

Honestly I don’t think that I have stepped foot inside a Circuit City store since like 1996….good riddance.

Go Marlins!!!!

Matthew

On November 10, 2008 at 4:45 pm

To those folks that lost their jobs at Circuit City…You will find new jobs!

http://www.linkedin.com (professional networking)
http://www.indeed.com (aggregated listings)
http://www.realmatch.com (matches jobs based on your skills)

Good luck to the circuit city folks!

Jose

On November 11, 2008 at 4:09 am

I don’t really care for Best Buy either. I mean…. it’s fun to go in there but I never buy anything there. It’s so much cheaper to go shop online than to buy it at a retail store.

Kunta

On November 11, 2008 at 6:22 pm

I hear ya jose. I rarely step foot in those types of stores. I by all my goods off the net (amazon & ebay) and save some dough.