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."
|Report: Comcast will abandon Time Warner acquisition||53|
|Friday Night Shortbread||17|
|Acer's Switch 10 is a svelte, Atom-powered convertible||11|
|Hardware makers want to standardize the stylus||39|
|Deal of the week: The M500 960GB for $290, Battlefield Hardline for $36, and lots more||12|
|Thermaltake's Pacific radiators come in all the sizes||8|
|Modders can now charge for their work on Steam Workshop||215|
|Samsung's new 840 EVO fix starts trickling out||23|
|Arkham Knight requires at least 2GB of graphics memory||113|