The second largest consumer electronic store Circuit City (CC) filed for Chapter 11 bankruptcy today in Virginia (Reuters). The news didn’t really surprise me, given how much trouble the retailer has went through in recent years (here’s a timeline of Circuit City from MercuryNews.com). Early this year, Blockbuster made a $1 billion bid to take over the store, but the deal failed later after Blockbuster withdraw its offer because of deteriorating market conditions. Circuit City has been struggling to make a profit lately amid fierce competition from bigger rival Best Buy (BB). In the past 6 quarters, CC had made money in only one of them.
In the bankruptcy filing, Circuit City says it would close 155 stores by December 31 and eliminate 17 percent of its U.S. workforce. Other 80% of its stores nationwide will remain open when it undergoes restructuring. What this means to you? Hardly any unless you work for CC or hold the stock. But if you are planing to shop for computer, TV or digital camera this holiday season, you may find some bargains at closing Circuit City stores near you (here’s a complete list of closing Circuit City stores in PDF format)
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