Circuit City in Chapter 11
November 11, 2008
US electronics firm Circuit City has filed for bankruptcy protection. The retailer filed for Chapter 11 protection from creditors at the US bankruptcy court in Richmond, Virginia, where it has its headquarters.
The company said it had secured $1.1bn in loans to provide working capital while it was under Chapter 11 protection. Last week, it said it would shut 155 of its 700 stores by the end of December, cutting 17% of its US workforce. Circuit City has faced particularly tough competition from Best Buy, which has increased its market share.