Wednesday, October 08, 2008

Circuit City just can't catch a break

News site is reporting that Circuit City's credit reccomendation has just been yanked.

Bernard Sands, a credit reporting company that advises manufacturers whether to ship goods to retailers, has pulled it recommendation from Circuit City Stores Inc. after the company reported last week $239 million in losses for the second quarter.
The recommendation was pulled because of concerns that the retailer might not be able to pay vendors.
Losing the recommendation could affect the company's ability to get products that it sells.

Wow. When it rains, it pours. This isn't the sort of news CC's vendors want to hear before Christmas.

Marginally on topic, I was amused to look back at this news article from May that quoted Ultimate's Mark Wattles as saying a buyout was just around the corner, and that "that the buyer will likely be a private equity firm with deep-enough pockets to take the company private."

Deep pockets? Right now, with CC's market cap of $76.97 million, the Girl Guides of America could stage a hostile takeover with the proceeds of one of their cookie drives.

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