Circuit City has filed for Chapter 11 bankruptcy protection today. As retailers have been hit hard by a slowdown in consumer spending and the credit crunch, Circuit City will close 155 of its stores and lay off about 1,300 employees.
The company is seeking to obtain $1.1 billion in debtor-in-possession financing. With its $400 million remaining from a $1.3 billion credit line obtained prior to the bankruptcy filing, Circuit City said it should have enough financing to make it through the holiday shopping season and hopes to emerge from bankruptcy protection by the first half of 2009.
This retailer exists to serve a specific demographic and we hope they make it through this tough economic time.
When you think of electronic retailers, Circuit City is not what comes to mind. However inaccurate the stereotype may be, it is the place that your Uncle Eugene goes to buy your Aunt Estelle that VCR so she can record her soap operas. Who even knew Circuit City has 712 stores even in existence??
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