Ten days ago, word got out that Circuit City could be on its way to bankruptcy. The Washington Post said the U.S. electronics store chain had lost a recommendation from a "firm that advises manufacturers on whether to ship goods to retailers," signaling it might have trouble paying vendors. The firm also faced a number of blows in recent months, including the departure of its CEO, Blockbuster's withdrawal from a takeover bid, and $239-million losses for its last fiscal quarter.
Today, the Wall Street Journal reports that Circuit City is considering a plan that would involve shutting "at least" 150 stores and cutting jobs. Circuit City sees the move as a potential alternative to filing for Chapter 11, the WSJ adds. Circuit City has also enlisted the services of a corporate law firm and a consulting firm to come up with a turnaround strategy. The law firm—Skadden, Arps, Slate, Meagher & Flom LLP—reportedly walked Kmart through its 2002 brush with bankruptcy.
According to the WSJ, Circuit City is scrambling to prevent a bankruptcy filing before the holiday season in order to avoid damaging consumer confidence: "Customers might doubt the ability of a retailer involved in bankruptcy proceedings to provide warranties on products like laptop computers and flat-screen TVs."
|1. Ryszard - $503||2. punkUser - $502||3. the - $306|
|4. SomeOtherGeek - $300||5. Ryu Connor - $250||6. doubtful500 - $200|
|7. Anonymous Gerbil - $150||8. danny e. - $125||9. SecretSquirrel - $125|
|10. excession - $101|
|Rockchip SoC powers $149 Chromebooks, sub-$100 dongle||1|
|The TR Podcast 173: Torquing the Titan||4|
|A fresh look at storage performance with PCIe SSDs||30|
|Leaked specs detail Intel's 14-nm Braswell SoCs||33|
|Here are our musings on the new MacBook||151|
|Microsoft unveils Atom-powered Surface 3 tablet||78|
|Source code references hint at Tegra X1 Chromebooks||2|
|Samsung's 850 EVO M.2 solid-state drive reviewed||32|
|New Windows 10 build includes Project Spartan browser||67|
|THIS IS THE INTERNET. THERE IS NO PLACE FOR FUN DISCUSSION.||+36|