Circuit City In Trouble!
Circuit City is in serious trouble and coming close to filing for Chapter 11-bankruptcy protection. Mainly because of Blockbuster’s decision not to move forward and buy the company. Blockbuster ‘s main reason for the pullout wasn’t clear. They did say, “based on market conditions and the completion of our initial due diligence process, we have determined that it is not in the best interest of Blockbuster’s shareholders to proceed with an acquisition of Circuit City.” This leaves the door wide open for some huge private equity firm. Right now Circuit City’s stock is just about $2.00 a share. Shareholders are losing a lot of money and would love a quick sale to come soon.
