Circuit City files for bankruptcy protection
By VINNEE TONG and MICHAEL FELBERBAUM, AP Business Writers
NEW YORK – Circuit City Stores Inc., the nation's second-biggest electronics retailer, filed for bankruptcy protection on Monday but plans to stay open for business as the busy holiday shopping season approaches.
It filed under Chapter 11 of the bankruptcy code, which will allow it to hold off creditors and continue operations while it develops a reorganization plan.
The Richmond, Va.-based company has been struggling as nervous consumers spend less and credit has become tighter, and the retail industry overall is facing what's expected to be the weakest holiday season in decades.
Circuit City also said it would cut 700 more jobs, after announcing a week ago that it would close 20 percent of its stores and lay off thousands of workers.
"This isn't a surprise," JPMorgan analyst Christopher Horvers said, adding that the reorganization could help the company get out of leases for certain bad store locations.
FOR FULL STORY, CLICK ON TITLE ABOVE WHICH LEADS TO ORIGINAL LINK.
NEW YORK – Circuit City Stores Inc., the nation's second-biggest electronics retailer, filed for bankruptcy protection on Monday but plans to stay open for business as the busy holiday shopping season approaches.
It filed under Chapter 11 of the bankruptcy code, which will allow it to hold off creditors and continue operations while it develops a reorganization plan.
The Richmond, Va.-based company has been struggling as nervous consumers spend less and credit has become tighter, and the retail industry overall is facing what's expected to be the weakest holiday season in decades.
Circuit City also said it would cut 700 more jobs, after announcing a week ago that it would close 20 percent of its stores and lay off thousands of workers.
"This isn't a surprise," JPMorgan analyst Christopher Horvers said, adding that the reorganization could help the company get out of leases for certain bad store locations.
FOR FULL STORY, CLICK ON TITLE ABOVE WHICH LEADS TO ORIGINAL LINK.
Labels: circuit city, commercial real estate, retail, Sean Dreznin, shopping center, yahoo news
posted by S. Dreznin at
10:01 AM
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home