Circuit City Bankrupt, Requests Auction Sale on Products
In 2008, reports stated that Circuit City is losing billions of dollars in revenue. This triggered Circuit City to close down. Recession in the US really took its toll even on big companies.
In addition,
Circuit City said in a statement it may be forced to liquidate if it can’t find a buyer by the end of next week. The retailer asked a judge to approve a Jan. 13 auction, according to court papers filed Jan. 5 and unsealed today in U.S. Bankruptcy Court in Richmond, Virginia, where it is based.
“The company is engaged in significant discussions, meetings and negotiations with two highly motivated and interested parties concerning the terms of a going concern transaction,” according to the statement today, which didn’t identify the potential buyers.
Circuit City sought Chapter 11 protection on Nov. 10 after suppliers concerned about declining sales at almost 1,500 U.S. and Canadian stores cut off credit and demanded cash up-front for shipments. The retailer, which made less money than it expected from selling stores in bankruptcy, is asking for an expedited process to organize the auction, according to court documents.
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Tags: Circuit City Bankrupt, Circuit City Bankruptcy, International Business News
