Circuit City runs into more woes

It seems that there is no end in sight to the troubles that are plaguing Circuit City. In November 2008, Circuit City filed for bankruptcy in what seemed their last attempt at some semblance in the already volatile financial market, hoping to get some relief from their suppliers who kept on tightening the noose with stricter terms like upfront payments. The official report read that the giant retailer owed more than $2 billion to over a 100,

According to the filing, as of August 31st the retailer owed around $2.32bn to more than 100,000 creditors, with HP, Samsung and Sony taking the top spots. Circuit City assets were valued at $3.4bn.

With Circuit City up for grabs, there were speculations that the private equity firm Golden Gate Capital and tycoon Ricardo Salinas Pliego, who owns somewhere around 28% of the company were potential buyers. Circuit city had until January 16 to get themselves a buyer. But unfortunately for the company and the 30,000 employees, they were unable to and now have to liquidate all its assets.

Founded in 1949, it is indeed a sad end for the mega store chain. Recession has taken its toll on the economy and experts predict that this is just the beginning of things to come.