Circuit City Stores Inc. filed for bankruptcy Monday, November 10th, 2008. The announcement was made approximately a week after the company said it would close 20% of its stores.
Circuit City said it decided to file for protection under the Chapter 11 of the Bankruptcy Code, because it will allow the company to hold off creditors and continue its operations, while a reorganization plan is designed. The company said it was facing pressure from vendors who threatened to withhold products during the holiday period, and that’s why it decided to file for Bankruptcy protection.
James A. Marcum, vice chairman and acting president and chief executive, said in a statement that filing for bankruptcy “should provide us with the opportunity to strengthen our balance sheet, create a more efficient expense structure and ultimately position the company to compete more effectively”.
In the Riverside County, stores will be closed in the cities of Riverside, Murrieta, Moreno Valley and Mira Loma. Stores located in Pomona, Compton, City of Industry in Los Angeles County and Foothill Ranch in Orange County will also be closed. Other Southern California stores targeted for closure include locations in Escondido and Vista in San Diego County.
There will still be plenty of stores that will remain open in the Inland Empire, however, including locations in the cities of: Moreno Valley, Montclair, Rancho Cucamonga, San Bernardino, and Temecula.
