Circuit City this week will go to court seeking to cease payments to 40 former top employees- including ex-CEO
Philip Schoonover- and also to call off several business contracts.
According to a report in the Richmond Times-Dispatch newspaper, the retailer will move, in U.S. Bankruptcy Court, to call off the contracts, which it calls "financially burdensome and unnecessary." The company is also seeking to cancel contracts with Google, the National Service Alliance and MGM Grand Hotel & Casino, among other former partners.
Schoonover received a reported $1.8 million severance package when he left the company in September.
In
a separate ruling earlier this month, the same court found that Circuit City could keep paying severance packages to some employees, over the objection of some creditors who asked to be paid first.
