Circuit City files for Chapter 11 protection

[Cratermaker]

http://biz.yahoo.com/ap/081110/circuit_city_bankruptcy.html?.v=2

Well, that changed quickly. I guess someone took a harder look and decided closing a bunch of stores wasn't enough or that just made it easier to file Chapter 11 somehow.

[brad kaste]

I stopped by their Niles, Illinois store on Saturday. Everything was discounted 10%. I'm sure the discount percent will increase as time goes by. Too bad about Circuit City,...they always struck me as a store/staff that had the time to help and assist you. Something I could never say about Best Buy.

[Rami]

Yeah, this is no real shocker...

[Cratermaker]

There was a brief blurb on this last night on one of the news channels. What happened was, CC announced they were closing stores and vendors got nervous about extending them credit, fearing they might go bankrupt and have to eat the cost. Without that credit, they weren't going to be able to stock their shelves for Christmas shoppers and they had to declare bankruptcy. So closing the stores triggered the bankruptcy instead of preventing it.

I guess the rules might have changed when credit is tight. Businesses might not be able to slash jobs to increase their quarterly earnings statement anymore!