Circuit City bankruptcy worries: store closures and job cuts

One of the first areas to struggle when consumers have little money to spend is in the electronics industry, which is why Circuit City is now facing bankruptcy fears. Circuit City understands that they are in trouble, so are now considering closing 150 stores and to cut thousands of jobs.

Circuit City hopes that if they made that decision, then it could avoid them filing for bankruptcy protection. Standard & Poor’s analyst Michael Souers said that they appreciate Circuit City’s attempt to stay solvent. They also said that they remain pessimistic for sales in the holiday season.

If Circuit City were to file for bankruptcy protection, they would be the largest retailer to do so in several years. Circuit City shares fell 2.6% to 38 cents a share this afternoon. 96 percent of the value of the electronics giant has now been wiped out this year.

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