By Spencer at 10:32 AM CST
Circuit City’s day has finally come – they announced earlier today that they planned on filing for Chapter 11. Circuit City’s CFO, Bruce Bensanko, states that there were three factors that created CC’s bad financial situation: “…erosion of vendor confidence, decreased liquidity and a global economic crisis.” In an attempt to increase cash flow and cut losses, Circuit City recently closed 155 stores, but it seems that it simply wasn’t enough. Should be an interesting holiday season because of the closeout inventory sales, and with Black Friday fast approaching competition with other electronics retailers such as Wal-Mart and Best Buy is going to be intense.
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