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General
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Written by Daniel
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Monday, 10 November 2008 11:26 |
Bankrupt Circuit City doing circuits around the drain
By John Timmer | Published: November 10, 2008 - 10:53AM CT
All signs are pointing to a major slowdown of consumer spending, and that trend may have claimed its first major casualty today. Circuit City, which has been struggling for a while, announced plans to liquidate 155 stores last week in an effort to stave off bankruptcy. That announcement did not appear to have the intended effect, as the retailer filed for bankruptcy this morning.
Circuit City has been on the rocks for a while, as competition from Best Buy, Wal-Mart, and other large chains has eaten into its profits—or, more accurately, expanded its losses. In the latest quarter, which ended in September, the company reported a loss of $1.45 a share, nearly four times the loss it experienced a year before. The company's stock price has been dropping faster than a falling market since June, which it started at around $5 a share. By the end of October, the New York Stock Exchange had notified the company it was in danger of being delisted because its stock price remained stuck below $1. [ ARS Technica...] [Comments...]
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