RICHMOND, Va. (AP) - Circuit City has filed for bankruptcy protection, planning to stay open for business as the busy holiday season approaches.
The nation's second-largest consumer electronics chain says vendors were threatening to withhold products. The company also said it cut 700 more jobs at its headquarters, after announcing a week ago that it would close 20 percent of its stores and lay off thousands of workers.
Circuit City filed under Chapter 11 of the bankruptcy code, which will allow it to hold off creditors and continue operations while it develops a reorganization plan. Its Canadian operations also filed for similar protection.
The Richmond, Va.-based company has had only one profitable quarter in the past year. It faced significant declines in traffic and heightened competition from rival Best Buy Co. and others.
The chain’s Sherman store was among 155 locations that will close by the end of the year.
(Copyright 2008 by The Associated Press. All Rights Reserved.)