Circuit City Files Bankruptcy

Online, March 29, 2010 (Newswire.com) - Circuit City was an electronic retailer that specializes in electronic such as computers, televisions, etc and large appliances like refrigerators. The first store was opened in 1949 and had 567 retail locations. Circuit city was the second largest electronic store with Best Buy being the first. On November 10, 2008 Circuit City filed for Chapter 11 bankruptcy. Due to Circuit City's financial losses and unsecured debts to its creditors of $625 million.

However even after filing for bankruptcy more problems arise for Circuit City. The problems are liquidating its large retail locations and the retailers that need Circuit City as an essential part of its business. The liquidating of they stores provided a problem because most of the large size of the stores with an average of 17,000 to 66,000 square feet. Store of that size are excessive compared to the average retailer's needs. Which makes leasing or selling these large locations a problem making it difficult to liquidate.

The other problem is other retail locations need to have Circuit City as an essential part of their business. Firstly due to Circuit City's size it is a draw for customers to many smaller shopping plazas. Many smaller businesses like "mom and pop" shops depend on Circuit City to draw in business and without the pull of a major chain like Circuit City these stores are being forced to close with out the added business. Also retailers such as Verizon and Samsung that host their operations inside of Circuit City depend on these locations as a major part of their retail business. With Circuit City filing for bankruptcy it becomes another case example of bad management of large corporations.