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Circuit City files for Chapter 11

Circuit City Stores Inc., the Richmond-based electronics giant, filed for Chapter 11 bankruptcy this morning.

The company’s action comes after stiff competition from Best Buy Co. and losses of $320 million last year. Circuit City said it hopes to remain open during the holiday season, as it puts together a restructuring and reorganization plan. In its petition filed in Richmond bankruptcy court, the company lists assets of $3.4 billion and liabilities of $2.32 billion.

The Washington Post has an account, as does the Richmond Times-Dispatch.

Posted by Paul Fletcher

4 comments

  1. Remember when Circuit City was a favorite in “Good to Great” by Jim Collins? Remember when we thought being big gave you clout with customers and vendors to produce long-term returns (Michael Porter’s 5 Forces Model)? It’s time we recognize that the old approach to management doesn’t work in a rapidly shifting competitive world. There are winners in today’s market, but they follow a different approach. Read more at http://www.ThePhoenixPrinciple.com

  2. Remember when Circuit City was a favorite in “Good to Great” by Jim Collins? Remember when we thought being big gave you clout with customers and vendors to produce long-term returns (Michael Porter’s 5 Forces Model)? It’s time we recognize that the old approach to management doesn’t work in a rapidly shifting competitive world. There are winners in today’s market, but they follow a different approach. Read more at http://www.ThePhoenixPrinciple.com

  3. Not surprised. I went there last year to buy a flat-screen. After 20 minutes of looking at the displays, not a single salesperson had approached me to offer any assistance. Customer service simply didn’t exist, at least in the Roanoke store. I ended up buying at Best Buy, which had a very knowledgeable and friendly salesman and who told me how to save money on the purchase.

  4. Not surprised. I went there last year to buy a flat-screen. After 20 minutes of looking at the displays, not a single salesperson had approached me to offer any assistance. Customer service simply didn’t exist, at least in the Roanoke store. I ended up buying at Best Buy, which had a very knowledgeable and friendly salesman and who told me how to save money on the purchase.