Circuit City Files Chapter 11, Announces More Layoffs
It looks like it could be a tough holiday season for Circuit City and its employees. Just one week after Circuit City announced another series of store closings and layoffs the company today announced it has filed for Chapter 11 bankruptcy. Filing for Chapter 11 will allow Circuit City to put off its creditors while it attempts to reorganize its finances and get back on its feet. The company also announced an additional 700 job cuts, over and above those announced last week. Circuit City also said it had arranged a $1.1 billion revolving line of credit to augment its working capital.