Circuit City has also announced plans to lay off thousands of workers in closing 20 percent of their stores, as stated in the report.
Wired PR News.com – As with many retailers and businesses across the country, early predictions have brought fears of not being able to stay afloat past the holiday season. The Associated Press has reported that the fears of one retail business, electronics provider, Circuit City, have led to the decision to file for Chapter 11.
The retail giant filed on Monday for bankruptcy in hopes of protecting itself from the financial troubles that have many on edge. Retailers this holiday season are expected to see their lowest sales numbers than shown in the past several years. This, combined with news of the highest unemployment rate in 14 years, contributes to continued worries for many across the nation. Filing for bankruptcy will allow the company to remain in operation while working on a restructuring plan.
Circuit City is the second largest retailer of electronics in the United States.
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