Liquidating circuit city
Circuit City filed one week after saying it would close 155 stores, or more than one-fifth of its retail base, and eliminate 17 percent of its U. In a court filing Monday, Chief Financial Officer Bruce Besanko said the retailer filed for Chapter 11 in order to continue its turnaround efforts."In large part, a Chapter 11 filing is due to three factors, all of which contributed to a liquidity crisis that prevented the company from completing its turnaround goals outside of formal proceedings: erosion of vendor confidence, decreased liquidity and a global economic crisis," Besanko said.It used to be that companies came out of bankruptcy relatively easily.Chapter 11 was like rehab: a safe place, insulated from the harsh realities of the outside world—like the need to keep current on bills—that gave companies a chance to regroup and relaunch.
“We are hired to get the most amount of money for the creditors.” Eli Dawson, a handler at Fed Ex, picked up a few new CDs at 20 percent off, but the rest of the selection didn’t impress him.Athletic gear popularity has increased as more Americans wear sneakers, athletic tops and t-shirts around town, not just for the purpose of working out. Retailers like Target (tgt) and Kohl's (kss) have entered the space by moving to sell more athletic wear.Meanwhile, manufacturers like Nike (nke) and Under Armour (ua) have increasingly focused on selling their gear through their own channels, including their e-commerce platforms.At the time of liquidation, Circuit City was the second largest U. As Circuit City fades into history, the electronics chain is teaching shoppers that a liquidation sale does not necessarily translate to bargains.