It surprised me during the past holiday season that people would actually still purchase Circuit City gift cards and that the store chain was even still selling them knowing that they were not going to remain in business. Now, the media reports are starting to focus on the closure, and I don't think anyone should be surprised that they could not reach an agreement with their creditors and lenders:
Bankrupt electronics retailer Circuit City Inc. said Friday it has asked for court approval to close its remaining 567 U.S. stores and sell all its merchandise.
The company said it has 34,000 employees.
"We are extremely disappointed by this outcome," James Marcum, acting CEO for Circuit City, said in a statement. "We were unable to reach an agreement with our creditors and lenders to structure a going-concern transaction in the limited timeframe available, and so this is the only possible path for our company."
In a filing with the U.S. Bankruptcy Court for the Eastern District of Virginia, Circuit City - the No. 2 electronics retailer after Best Buy (BBY, Fortune 500) - said it had reached an agreement with four companies to start the liquidation process.
No comments:
Post a Comment