Circuit City Files for Bankruptcy Protection

Circuit City has filed for Chapter 11 bankruptcy protection this morning. It appears that the recession that the government refuses to acknowledge has hit one of the biggest retailers in America.

Circuit City, the No. 2 U.S. consumer electronics retailer, arranged $1.1 billion of debtor-in-possession financing from existing lenders led by Bank of America that will allow it to continue operating under bankruptcy.


Funny thing was is that I was thinking about buying their stock a few months ago. But looking at it today their stock has plummeted. One of the few things I have done right in the market.

Another direct result to the recession hitting Circuit City is because "Traffic is down in malls throughout the United States and as a result, the landlords, depending upon how leveraged they are, may have to file bankruptcy themselves," Conrad said.

They have also closed 6,000 retail stores this year alone.