Circuit City Files for Bankruptcy: Report

Circuit City

(CC) - Get Report

has filed for bankruptcy on Monday about a week after it said it would close 20% of its stores, the

Associated Press

reports.

Circuit City says it has more than $1 billion in assets and more than $1 billion in liabilities, the

AP

reports, citing a court filing.

The company says it anticipates it would have money to distribute to unsecured creditors, who get paid last, according to the

AP

.

Last week, the Richmond, Va., company said the move to close stores was partly due to its deteriorating

liquidity

position and continued weakness in the economy.

The company said a number of factors have hurt its financial state in recent weeks, including declining consumer confidence and slower spending.

Among other things, the company hasn't been able to collect a roughly $80 million tax refund that the company believes it should be getting from the federal government.

Circuit City has steadily been losing market share to rival

Best Buy

(BBY) - Get Report

.

This article was written by a staff member of TheStreet.com.