Circuit City Stores Inc. filed for bankruptcy Monday, November 10th, 2008. The announcement was made approximately a week after the company said it would close 20% of its stores.
Circuit City said it decided to file for protection under the Chapter 11 of the Bankruptcy Code, because it will allow the company to hold off creditors and continue its operations, while a reorganization plan is designed. The company said it was facing pressure from vendors who threatened to withhold products during the holiday period, and that’s why it decided to file for Bankruptcy protection.
James A. Marcum, vice chairman and acting president and chief executive, said in a statement that filing for bankruptcy “should provide us with the opportunity to strengthen our balance sheet, create a more efficient expense structure and ultimately position the company to compete more effectively”.
In Orange County, Circuit City will be closing its Foothill Ranch location. But don’t fret, Orange County, there are still plenty of nearby Circuit City locations that will remain open. Stores will remain open in: Irvine, Newport Beach, Laguna Hills, Orange, Rancho Santa Margarita, Fullerton, and Brea.
Some of the other store locations that will be closed throughout the state of California are those located in Pomona, Compton, and City of Industry in Los Angeles County. Other Southern California stores targeted for closure include locations in Escondido and Vista in San Diego County, and in the cities of Riverside, Murrieta, Moreno Valley and Mira Loma in Riverside County.
