Just days after announcing that they're shutting down 155 stores and laying off thousands of employees, Circuit City just took another step towards the deep end of the pool. Today, Circuit City filed for chapter 11 bankruptcy.
Chapter 11 holds off creditors, temporarily. Circuit City has negotiated a commitment for a $1.1 billion "debtor-in-possession revolving credit facility to supplement its working capital," according to a report on CNET.
In addition to those layoffs, another 700 positions are looking at pink slips.
Ever the optimist, see what CEO James A. Marcum had to say.
"We appreciate the support we have received from our lenders in the midst of such
a tight credit market," acting CEO and vice chairman James A. Marcum said. "With
this support, we believe we have the opportunity to leverage our market position
and the strength of our brand to restore Circuit City to solid financial
footing."
My local Circuit City is on the chopping block. They're selling off stock through a liquidation company, and the poor sales kid said he didn't expect to be around by the holidays. Right now, they're cutting prices just 10-20%. I'll keep you posted on the bargains. —Leslie Shapiro
