Circuit City Stores Inc has filed for bankruptcy protection even as it said they will stay open for the Christmas season. The move seeks to stave off pressure from vendors who threatened to withhold products during the holiday shopping period.
Chapter 11 of the bankruptcy code allows a company to hold off creditors and continue operations while it develops a reorganization plan. Circuit Cityâ€™s Canadian operations also filed for similar protection.
â€œ(It) should provide us with the opportunity to strengthen our balance sheet, create a more efficient expense structure and ultimately position the company to compete more effectively,â€ said James A. Marcum, vice chairman and acting president and chief executive.
[Via: Yahoo News]