Distribution Business Articles

Circuit City has been hammered by losing quarters for over a year. They have cash flow issues which have prevented them from being able to buy the goods they need for the holidays. Even their own suppliers are experiencing a credit crunch. To add insult to injury, the Federal Government has not given them their $80 million tax refund (you lose money as a big corporation and you can expect a hefty return many times).

So Circuit City Announced that they will be starting with a 155 store liquidation. They will sell all the goods in 155 stores starting Wednesday and then close the doors on those stores. (list of stores http://files.shareholder.com/…20List.pdf )

The company is in serious trouble, will likely be delisted off the stock exchange and bankruptcy is expected by most analysts.

As I look into this, I do not see news in Circuit City's actions. That was little more than a foregone conclusion a few weeks ago if not further back.

However, the key item to watch here is the credit crunch hitting Circuit City's suppliers.

http://online.wsj.com/…92633.html