Circuit City Files for Bankruptcy: Report
Circuit City
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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
.
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Last week, the Richmond, Va., company said the move to close stores was partly due to its deteriorating
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
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.
This article was written by a staff member of TheStreet.com.
