Get to know Circuit City Bankruptcy

Retailers that have filed for bankruptcy protection this year include Linens ‘n Things, Mervyn’s and Sharper Image. NEW YORK - Struggling electronics retailer Circuit City Stores Inc.

RICHMOND, Va. - Circuit City Stores Inc. Circuit City is a well-known brand and could re-emerge from bankruptcy, Stifel Nicolaus & Co.

Circuit City said it had lined up $1 billion in loans to provide working capital while it is in bankruptcy protection.

Circuit City has not filed for bankruptcy. I’ve done some research online and want to say that it is not official that Circuit City is filing for bankruptcy. My husband is a manager for Circuit City and I can assure you that they are not filing for bankruptcy.

Two analysts said Circuit City may file for bankruptcy, according to two Wednesday stories by Reuters and Bloomberg. It’s unknown what type of bankruptcy Circuit City, the nation”s second largest electronics retailer, may file. Last week, Deutsche Bank’s Michael Baker said in a note to clients that without a strong holiday season, Circuit City “significantly increases bankruptcy risk.”

I work in a Circuit City in Colorado that is very profitable and customer friendly.

Best Buy would be a direct beneficiary of a Circuit City bankruptcy, Bradley added, which would outweigh the impact of falling TV prices and cutbacks in consumer spending. Cleveland, Ohio - A research analyst at KeyBanc Capital Markets, here, expects Circuit City to enter Chapter 11 bankruptcy protection as early as the first quarter of 200 “We believe a Circuit City bankruptcy has become a question of ‘when’ rather than ‘if,’” Bradley Thomas observed in a research note.

Since the end of May, Circuit City’s stock has lost about 87% of its value; the company has fired its CEO, lost a $3 billion takeover offer from Blockbuster, and posted quarterly losses of $232 million. 31, Circuit City had 714 stores in the United States and 772 stores and dealer outlets in Canada, employing about 45,000 people. 2 In September, Circuit City withdrew its previous fiscal 2009 outlook and said that it was suspending future store openings beginning next fiscal year to review all aspects of the business ahead of the holiday season, its biggest selling period. By shutting the stores, 59-year-old Circuit City could liquidate about $350 million in inventory, which it could use to pay off certain real-estate costs and pressure existing landlords to renegotiate some leases, the paper added.

Circuit City posted a wider second-quarter loss in September with a 13 percent decline in sales at stores open at least a year.

If I am not mistaken, Circuit City did NOT turn down an offer from Blockbuster.

Judging by my own personal experiences however, many Circuit City employees will find it hard to measure up to the good employees at more succesful businesses. Earlier this week, Circuit City reported that sales at stores open at least a year fell 13 percent in the fiscal second quarter ended Aug. I kept telling him no but he kept insisting when finally I had to politely say to no I will not by a Circuit City back warranty because I don’t believe Circuit City will be in business in a few months. Ive been with Circuit City for 8 months, I actually quit Best Buy for a position at Circuit City.

Good riddance, Circuit City.

Circuit City was trading at 41 cents a share at press time on Monday afternoon.

While the retail industry overall is facing what’s expected to be the weakest holiday season in decades, Circuit City’s struggles have intensified as nervous consumers spend less and credit has become tighter.

Judging by the customer service and store tidyness, or lack thereof, that I encountered on my last two visits to an OC Circuity City, I say good riddance.

I think its ignorant to say that these people need to go out of bussiness.

Linens ‘n Things, Mervyn’s and Barbeques Galore USA filed for Chapter 11 bankruptcy protection.