Consumerist
reports that, after a series of major blows, Circuit City may now be facing
bankruptcy. Within the last few months alone, the electronics retail chain has
allegedly fired its CEO, seen Blockbuster withdraw a $1.3-billion buyout offer,
and posted losses of over $239 million for its second fiscal quarter. Oh, and
Circuit City's stock price has plummeted from $4.91 at the end of May to just 43
cents yesterday. To make matters even worse, the store chain has now lost "a
recommendation from a firm that advises manufacturers on whether to ship goods
to retailers," according to the Washington Post. The move reportedly signals
"concerns that Circuit City may have trouble paying its vendors." Consumerist
points out that the new
CEO has hired advisers to help breathe life back into the company, but in
light of current economic conditions, Circuit City could indeed be circling the
drain.
