Economy Circuit City Files Chapter 11
posted by November 10 at 15:23 PMon
Soon: fewer outlets for disposable technology.
Circuit City Stores Inc., the nation’s second-biggest electronics retailer, filed for bankruptcy protection on Monday (Nov. 10) but plans to stay open for business as the busy holiday shopping season approaches.
It filed under Chapter 11 of the bankruptcy code, which will allow it to hold off creditors and continue operations while it develops a reorganization plan.
The Richmond, Va.-based company has been struggling as nervous consumers spend less and credit has become tighter, and the retail industry overall is facing what’s expected to be the weakest holiday season in decades.
Circuit City also said it would cut 700 more jobs, after announcing a week ago that it would close 20 percent of its stores and lay off thousands of workers.
Via Associated Press