Monday, November 10, 2008

Circuit City Files Chapter 11

And that, as they say, is that.

Richmond, Va. — Circuit City has filed for Chapter 11 bankruptcy protection and plans to continue operating the business with the help of a $1.1 billion debtor-in-possession revolving credit facility from its current lenders.
The company’s Canadian operations will also seek bankruptcy protection under the Creditors Arrangement Act in Canada (CCAA).

Early in 2007, when there was still enormous amounts of stupid private equity money sloshing around the globe, CC's board rebuffed a takeover offer of $20 a share. It would be unkind to say that was foolish in hindsight. Let's be honest, everything Circuit City's done for the past five years has been foolish in hindsight.

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