Circuit City!

The number two nation’s biggest electronics retailer filed for bankruptcy protection today. They do have plans to stay open for business though. And with one of the worst holiday shopping season’s coming up who knows how they will do. I was reading that the main reason for filing Chapter 11 was to get supplies moving again. It seems that vendors have been holding back inventory, which now they have to release. Apparently Circuit City owes Hewlett-Packard $118.8 million, Samsung $115.9 million, Sony $60 million, Zenith $41.2 million, Toshiba $17.9 million and many others. I got those numbers off a report done up on Yahoo.com. This bankruptcy only means one thing; more jobs will be lost. And on top of the cutting job’s Circuit City will be closing more stores. I knew this was going to happen when there stock price was trading below $1 for awhile now. Hopefully this won’t be too painful for a lot of communities these locations are around.

Tags: Circuit City

Circuit City For Sale!

One of Circuit City’s biggest investor’s is pushing for the sale of Circuit City. The reason for this is because the company is doing BAD. Right now Circuit City’s is trading at it’s 52 week low of $3.35. Circuit City once traded will above that mark. I’m not 100% sure what there highest ever was but it was over $30 a share. That’s a huge drop from what it once was. And selling off the company may not be a bad idea. But they may not get the price they’re looking for. And coming up with a price may be very hard to sell to share holders if it’s to low. The best thing is to reorganize at this point. Build the company back up and then sell. Who really knows what they’ll do in the end.

Tags: Circuit City