Circuit City Stores, Inc. (NYSE: CC) has received a new line of $1.1 billion in financing to help it stay afloat as it navigates through Chapter 11 bankruptcy. A court approved the financing, which will replace a $1.3 billion asset-backed loan the company had previously been using.How Circuit City will emerge from bankruptcy is anyone's guess. When it does, the American economy will still be in the throes of a recession and the name "Circuit City" will still be a black eye on the company from any consumer's perspective. Gregg Galardi, an attorney for the troubled company, indicated that sales at the retailer have plummeted 40% to 50% since the bankruptcy filing, according to The Associated Press.
At a local Circuit City in my area that is closing, the inside looks like a flea market more than any kind of retail operation. There's just a few flat-screen televisions left along with some digital cameras -- and the discounts aren't even that great. Perhaps all the good discounts have already walked out the door tucked under customer's arms. Regardless, the company will keep the new financing to pay employees and utility bills while it reorganizes and continues shuttering under-performing locations over the next few months. That is, until it reorganizes as a "new" entity and the customers still don't show up.
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Reader Comments (Page 1 of 1)
12-23-2008 @ 2:46PM
nick said...
They got to change management at the top. Got to get rid of those Obama backers who funnelled money to Obama. Can't understand how the voters of Minn could be so stupid to put Franken in office, this slime ball jew has been backed by left wing nut Soras, the guy is trying to get as much power to try to put his crazy ideas into motion, he owes Obama lock stock and barrel,
12-23-2008 @ 11:46PM
Iridium said...
Circuit City's closing sale was a joke. They took 60% off of an MSRP that a product had six months ago.
If something has a price of $199 at Best Buy and the 60% off price at Circuit City is $149, that isn't 60% off.
Sure its cheaper but it really is false advertising. Everything was marked up only to get marked down.
12-24-2008 @ 2:50AM
mark said...
Looked at the deals in Tallahasse Fl and we were told that we were to late. A broker had already bought the goods despicte CC having a close out sale par for all of the crap going on now.Just another lie !!!!! what is new
12-26-2008 @ 2:23AM
Jerry said...
whats so bad about this store they have better prices then best buy or as should call it worst buy and they have a nice selection so what is so wrong with there stores I have been to some and I would rather have one here then the worst buy that we have