Circuit City Files For Bankruptcy Protection
By Anna Johnson on November 11th, 2008Circuit City, one of the nation’s largest electronics retailers, which filed for bankruptcy protection on Monday after months of declining sales. Skip to next paragraph Related Times Topics: Circuit City Stores Inc.
The company said bankruptcy reorganization would help it win back vendors worried about being paid, and that a $1.1. billion line of credit would keep goods flowing to Circuit City stores through the crucial holiday season. But outside experts said the prospects of long-term survival for a chain in Circuit City’s position were bleak.
The company’s problems go back a decade, and it had long been faulted by Wall Street analysts for poor strategic decisions.
Circuit City is still the nation’s second-largest dedicated consumer electronics retailer after Best Buy, with more than 700 stores.
Interestingly, visitors to both the Circuit City and Best Buy websites have been tracking in tandem over the past few months, with Best Buy clearly pulling in more visitors. But both pale in comparison with the visitors to Amazon.com.
Source: Stephanie Rosenbloom, “Circuit City Seeks Bankruptcy Protection”, New York Times, November 10, 2008
