Circuit City Considering Big Cuts
Circuit City, in a bid to avoid bankruptcy, is considering a plan to close 150 stores, a move that would result in the elimination of "thousands" of jobs, the Wall Street Journal reported Monday. The company is said to be trying to avoid filing for bankruptcy prior to the holidays.
The Journal also reported that the troubled retail chain had retained the services of Skadden, Arps, Slate, Meagher & Flom LLP, the law firm that also assisted Kmart with its Chapter 11 reorganization.
Closing the stores would allow the company to liquidate their inventory and raise up to $350 million in cash.