US retailer Circuit City files for bankruptcy
Monday, 10 November 2008 15:17US electronics giant Circuit City said today it had filed for bankruptcy protection and obtained a $1.1 billion credit lifeline to battle a sharp decline in sales.
Circuit City said it had filed a petition for Chapter 11 bankruptcy protection while it reorganises with a federal bankruptcy court in Richmond, Virginia.
'The company plans to continue operating the business without interruption as management focuses on developing and executing a comprehensive corporate restructuring plan,' it said in a statement.
Circuit City's Canadian operations also will be seeking protection under the Canada's Companies' Creditors Arrangement Act, the Virginia-based retailer said.
The beleaguered retailer announced a week ago that it would close 155 stores, or 20% of its domestic footprint, and take other restructuring measures to fight a growing cash crisis and an economic downturn that has decimated sales.
On Friday the company said it was cutting 700 jobs at its corporate headquarters and other operations.
The company operated 721 stores in 165 US markets on 31 October; in Canada it operated 770 retail stores and dealer outlets on 30 September.
