Circuit City is preparing for the possibility that it may be forced to shut at least 150 of its 712 stores and cut thousands of jobs in order to avoid filing for Chapter 11 bankruptcy in the run up to Christmas.The report, which was in yesterday's Wall Street Journal, cited anonymous sources stated that the retailer appears to have accepted that it will now go bankrupt and is frantically looking to delay the inevitable, at least until after the critical Christmas period.
Amongst the moves the retailer has reportedly undertaken is the retaining of bankruptcy counsel, recruiting of a turnaround consultant and is working with investment bank Rothschild to help secure debtor-in-possession financing; something that will allow the company to pay off day-to-day expenses while in Chapter 11.
According to WSJ, the trouble with the credit markets has exacerbated Circuit City's problems in securing financing and is the reason why the retail chain is looking at liquidating $350m (£205m) in inventory that would be freed up by store closures.
Circuit City was unavailable for comment at the time of writing.
Source: Twice
Advertisement
Related Stories
- Kodak files for Chapter 11, sues Samsung Jan 19th 2012 at 7:24AM
- Kodak to file for bankruptcy says WSJ Jan 6th 2012 at 6:04AM
- Foxconn to hand over control of staff dorms Jun 25th 2010 at 3:57PM
- China's Foxconn investigation to be made public Jun 14th 2010 at 11:35AM
- Foxconn 'to close mainland China operation' Jun 11th 2010 at 12:38PM
- GAME to reduce retail presence Mar 1st 2010 at 12:27PM
- Systemax snags Circuit City May 13th 2009 at 1:00PM
- Systemax buys Circuit City brand and assets Apr 14th 2009 at 9:32AM
- Circuit City shuts down completely Mar 9th 2009 at 1:26PM
- Circuit City to close all 567 stores Jan 16th 2009 at 5:00PM
Follow Follow this article if you would like to receive notifications of updates.
Add a new comment
You need to be logged in to post comments. If you do not have an account then please register.
Comments
0 comments
There are no comments yet, be the first to add one!