Circuit City Files For Bankruptcy

[mandy]

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

[mandy]

Related:

Just two days after regional consumer electronics chain Circuit City declared bankruptcy, Best Buy has slashed its earnings forecast for the upcoming holiday season and much of 2009. The retail giant forecast fiscal 2009 earnings of about $2.30 to $2.90 per share, down from a prior forecast of $3.25 to $3.40 per share...

Best Buy, the No. 1 consumer electronics retailer in the U.S., said same-store sales fell about 7.6 percent in October after falling 1.3 percent in September. The company said same-store sales in November 2008 through February 2009 could decline by 5 percent to 15 percent, leading to an annual same-store sales decline of 1 percent to 8 percent....

full article: http://ecommercetimes.com/story/Best-Buy...65129.html