11-11-2008, 09:46 AM
Quote: Circuit City Stores Inc. joins the growing list of chain retailers filing for bankruptcy.
The consumer electronics retailer, No. 16 in the Internet Retailer Top 500 Guide, filed for Chapter 11 bankruptcy today in the U.S. Bankruptcy Court for the Eastern District of Virginia.
Despite various cost-cutting initiatives, including cutting 700 jobs and closing 155 stores, Circuit City says bankruptcy is its only viable option for reorganization and making it through the holiday shopping season. "We recently have taken intensive measures to overcome our deteriorating liquidity position, says Circuit City CEO James A. Marcum. The decision to restructure the business through a Chapter 11 filing should provide us with the opportunity to strengthen our balance sheet, create a more efficient expense structure and ultimately position the company to compete more effectively. ...
full article: http://www.internetretailer.com/dailyNews.asp?id=28411