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 - $603||2. Hdfisise - $600||3. Andrew Lauritzen - $502|
|4. Redocbew - $350||5. the - $306||6. SomeOtherGeek - $300|
|7. chasp_0 - $251||8. Ryu Connor - $250||9. mbutrovich - $250|
|10. YetAnotherGeek2 - $200|
|In the lab: FLIR's One thermal camera||37|
|Black Friday deals: Dell's U3415 curved monitor for $650 and more||24|
|Abu Dhabi government fund may be shopping GlobalFoundries||62|
|Asus goes for the gold with its 20th Anniversary GTX 980 Ti||7|
|MSI's Eco motherboards let owners fine-tune power consumption||9|
|Gigabyte's Z170X-Gaming G1 motherboard reviewed||15|
|Star Wars Battlefront video review||40|
|Club 3D active adapters convert DisplayPort 1.2 to HDMI 2.0||23|
|Phanteks' Power Splitter lets two systems run on one PSU||45|
|This is the answer to SSK's question on the Firefox news post.||+33|