Circuit City files Chapter 11
FROM TWICE: Lays off 700 headquarter staffers
By Alan Wolf of TWICE -- Video Business, 11/10/2008
NOV. 10 | FROM TWICE: A cash-starved Circuit City has filed for Chapter 11 bankruptcy protection and will continue to operate the business with the help of $1.1 billion in debtor-in-possession (DIP) financing from its lender banks.
The company said it took the action to ensure that vendors would continue shipping it goods through the critical holiday selling season. Despite what it described as “aggressive efforts” to secure vendor support, it said manufacturers’ concerns over the chain’s viability “escalated considerably” since it announced the closing of 155 stores last week.
According to today’s filing by Circuit City and several affiliated entities with the United States Bankruptcy Court for the Eastern District of Virginia in Richmond, Va., the company has more than $1 billion in liabilities and more than 100,000 creditors.
Read the full story on TWICE.com.
