Devastation Media

I guess the Circuit City bankruptcy is just another dismal sign of the times. The electronics powerhouse filed for Chapter 11 today in an attempt to beat those creditors off with a stick, many of which are owed tens of millions of dollars.

The Circuit City bankruptcy comes as no great shock to anyone following the price of their stock lately. The stock that had once traded at over 65 dollars had recently been reduced to nothing more than a penny stock. Which, for those of you who don’t follow the market, doesn’t literally mean it traded for a penny. Just that prices were very low. Low enough for them to receive a warning about it from the New York Stock Exchange, in fact. Never a good sign.

As for the future of Circuit City – They have plans for business as usual during the coming holiday season. I’m not sure how much good that will do them, considering the projected slow shopping season due to consumers being scared away by economic concerns. They have also been able to get themselves financing in spite of their troubles and have enough capital to try to stay afloat for now.

Unfortunately for the people who work there, store closings and layoffs are expected sooner rather than later as fallout from the Circuit City bankruptcy commences.

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