Quote"This company made massive mistakes," he said, citing a decision to get rid of sales people and other mismanagement. What's more, given the credit market freeze, Whalin added that no manufacturer wants to sell to any retailer who doesn't have money to pay for the merchandise. At the same time, Whalin said there's still a very slim chance that one or more firms that have expressed an interest in buying Circuit City could still buy it out of bankruptcy over the next few days. "I wouldn't say it's completely over yet for Circuit City, but it's almost over," Whalin said.
QuoteChapter 11 allows a company to hold off creditors while it attempts to restructure its finances. Circuit City said Monday that it has has negotiated a commitment for a $1.1 billion debtor-in-possession revolving credit facility to supplement its working capital. Circuit City announced earlier this month that it would shutter 155 stores and lay off 17 percent of its workforce. The retailer said Monday that it will eliminate an additional 700 positions in addition to the reductions resulting from the store closings, bringing the total layoff projection to around 20 percent of its employees. According to the company's FAQ, in February it had approximately 45,900 employees, not including workers taken on during peak selling periods.