By Jon White,
RICHMOND, Va. — A tough economy and lack of consumer traffic has led the nation’s second largest electronics retail chain—and one of the oldest in Virginia— to file for bankruptcy, close many of its stores, and slash jobs.
Richmond-based Circuit City Inc., one of the area’s largest employers, announced it is filing for Chapter 11 bankruptcy. The company also announced the closing of more than 150 stores and 6,800 employee lay-offs nationwide.
No one at the headquarters could be reached for comment and many employees in the region signed confidentiality agreements which stated they would not talk to the media.
Along with the bankruptcy announcement, Circuit City executives made a request for a $1.1 billion dollar line of credit in the form of multiple loans they say are necessary to sustain the business through the holiday season and hopefully, beyond.
The announcement should come as welcome news to Circuit City’s largest competitor, Best Buy, which has already launched a new advertising campaign and is looking to capitalize on the financial troubles of “The City”.