Circuit City Bankruptcy: Best Buy to benefit?

The hot news in the city today is that Circuit City has filed for Bankruptcy protection; however they do plan to stay open for business for the busy holiday season. This news is very bad for Circuit City and a worry for the workers, but someone’s bad news is another’s gain, and Best Buy could end up capitalizing on the situation.

Circuit City was force to file for Bankruptcy under Chapter 11, as they have been under pressure from vendors, who have been threatening to withhold products during the busy holiday season, the busiest shopping season of the year.

This news could certainly help Best Buy, but not at first. Shoppers still might believe that the best deals are still to be had at Circuit City, but in the long run Best Buy could end up becoming the outright market leader.

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