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Summary:

Troubled electronics retailer Circuit City filed for Chapter 11 bankruptcy protection today, as the company attempts to restructure and fend off creditors.

Troubled electronics retailer Circuit City filed for Chapter 11 bankruptcy protection today, as the company attempts to restructure and fend off creditors.

The company has listed $3.4 billion in assets and $2.32 billion in liabilities and says it owes Hewlett-Packard $119 million and Samsung $116 million, as well as $650 million to the likes of Sony, Toshiba and others.

Circuit City has already taken a number of steps aimed at stemming the financial bleeding. Earlier this month it shuttered a fifth of its stores, leaving it with 566 U.S. locations, and laid off roughly 20 percent of its 43,000 employees. As part of today’s news, the company said it will eliminate another 700 jobs.

Circuit City will receive $1.1 billion from lenders in order to stay open through the holiday season.

The company blames its dire situation on increased competition from the likes of Best Buy, Wal-Mart and web retailers like Amazon.

  1. Remember when Circuit City was a favorite in “Good to Great” by Jim Collins? Remember when we thought being big gave you clout with customers and vendors to produce long-term returns (Michael Porter’s 5 Forces Model)? It’s time we recognize that the old approach to management doesn’t work in a rapidly shifting competitive world. There are winners in today’s market, but they follow a different approach. Read more at http://www.ThePhoenixPrinciple.com

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  2. [...] Kevin registered at Circuit City. The newlyweds undoubtedly have a brighter future ahead of them than the retailer does. Please join us in wishing the new couple a lifetime of happiness. (And congrats to jk for getting [...]

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  3. Remember when Circuit City fired all of their commissioned salespeople? What goes around comes around . . .

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  4. Let’s not lose sight of the fact that Circuit City has been getting hammered for years. Best Buy offers better pricing, selection and service in a physical store and Internet stores offer infinite selection and better prices. This is just another example of a bad company that can’t survive a downturn.

    jmanley

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  5. [...] chain’s grim predictions follow news this week that troubled rival retailer Circuit City filed for Chapter 11 bankruptcy [...]

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  6. Super-Duper site! I am loving it!! Will come back again – taking you feeds also, Thanks.

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