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. GKey13 - $650||2. JohnC - $600||3. davidbowser - $501|
|4. cmpxchg - $500||5. DeadOfKnight - $400||6. danny e. - $375|
|7. the - $360||8. Ryszard - $351||9. rbattle - $350|
|10. Ryu Connor - $350|
|Microsoft Office welcomes Sway, a new authoring tool for web content||24|
|Semiconductor Wiki chronicles competing fab process densities from 130-10nm||7|
|This might be why Windows 10 isn't called Windows 9||77|
|Here's another reason the GeForce GTX 970 is slower than the GTX 980||19|
|The Windows 10 Technical Preview is available now||39|
|ARM announces OS, server tools for the Internet of things||10|
|Borderlands 2 comes to SteamOS, and The Pre-Sequel will follow||17|
|Haswell duallie infiltrates Zotac Nano XS mini PC||9|