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: Circuit city closes 150 stores
Electronics, always important in the US finds no buyers
Circuit City Stores Inc., the No. 2 electronics seller after Best Buy, filed for bankruptcy protection Monday, thus becoming the latest retailer hurt by a worsening economic downturn.
The Donald Trump story "chapter 11 is a business tool" ?
The banks got bailout to give credit to companies to buy merchandise. Where is the money from the banks for Christmas sales orders for circuit city and others small business ?
According to the company's Chapter 11 filing with the U.S. bankruptcy court in Richmond, Va., Circuit City, which currently has 566 operating stores in the United States, will continue to do business and pay its workers while it restructures debt and its business operations.
Circuit City said it decided to file for bankruptcy at this time to ensure that it would have "adequate merchandise flow to stores during the important holiday season."
The November-December holiday shopping months are crucial to retailers since the two months can account for 50% or more of merchants' annual profits and sales.
Just last week the Richmond-based company announced that it would close another 150 stores.
Most RecentMost Recommended Comments (1)
at 17:47 on November 12th, 2008
HELLO
Companies don't just go bankrupt on their own like wilting plants that kick over in the frost.
Circuit City's managers DECIDED to file for bankruptcy at this time. Undoubtedly good timing, since the 700 billion government handout package still hasn't been completely handed out. And using taxpayer money to fill in for poorer, outsourced and homeless consumers who can't afford to buy goods anymore, is all the rage.
Amazing what a 700 billion dollar incentive package will do.