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Circuit City Files For Bankruptcy, Owes $898 Million

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Given Circuit City's recently publicized downsizing and rumored credit concerns it probably won't come as a surprise that the situation is dire enough for the electronics and software retailer for them to file for bankruptcy protection. If that was out of the blue, aren't you glad we prefaced the announcement with how unsurprising it would be? Now you won't be shocked(!) to learn that Circuit City has filed for Chapter 11 bankruptcy protection. Circuit City owes close to $900 million to its vendors, which a $1.1 billion loan will help pare down. Speaking of paring down, CC will also be shedding another 700 employees, on top of the thousands already hit by the axe, according to the Wall Street Journal. The company's stock, in turn, tumbled further. WSJ also reports that the U.S. of A's second largest electronics retailer owes over $118 million to HP alone, with a $60 million bill to PlayStation manufacturer Sony also unpaid. The silver lining to this economic nightmare and the reality of thousand of out of work retail employees is that you'll save 10, maybe 20 percent on all sorts of goods, from video games to consoles to electronic gizmos. Their massive misfortune is your marginal gain! Circuit City Files for Bankruptcy [WSJ]