Afterclosing 155 stores last hebdomad , Circuit City has last bite the dust . The electronics depot chain - with 721 store in the US and 770 in Canada - has register for Chapter 11 protection in the U.S. Bankruptcy Court in Richmond , Virginia , pressure by the recess and contender from Best Buy and Wal - Mart . However , it may not be the end for the chain yet . • January 2008 : Increases a credit understanding from $ 500 to $ 1.3 billion . • May 2008 : Circuit City tries to sell itself to Blockbuster Inc. , after the latter make an offer that is afterward withdrawn . At this time , they fire employee with higher salaries and open smallest fund . • September 2008 : Reports loss of $ 239.2 million , after sales vanish for the sixth straight quarter . • November 3 : Last hebdomad they shut a fifth part of their US stores , displace twenty percent of their 43,000 - people workforce . • November 10 : Files for Chapter 11 bankruptcy protection . Lists $ 3.4 billion in asset and $ 2.32 billion in financial obligation , owe HP $ 119 million and Samsung $ 116 million . It lost $ 5 billion in stock market place value in just two class . Circuit City has said that their intent is to keep normal functioning in their current stores . In hypothesis , under a Chapter 11 reorganization , companies get a chance to avoid closure , reorganize debt and survive . According to Gary Merson from HD Guru , a local store voice has say that they will even keep honoring and sell giving cards during this period . [ Bloomberg – Thanks Gary ]
Bankruptcy
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