Circuit City files for Chapter 11 bankruptcy
A cash-starved Circuit City has filed for Chapter 11 bankruptcy protection and will continue to operate the business as a debtor in possession with the help of $1.1 billion in financing from its current lenders.
Richmond-based Circuit City, the nation's second largest electronics chain, filed for Chapter 11 bankruptcy protection this morning, one week after announcing it would close one-fifth of its stores in a nationwide effort to cut costs and conserve cash in an increasingly grim retail climate.