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
2 responses so far ↓
1 adam hartung // Nov 10, 2008 at 2:31 pm
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 Ross Hart // Nov 10, 2008 at 4:37 pm
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.