Circuit City has officially filed for Chapter 11 bankruptcy protection. The electronics retailer, which revealed plans to close 155 stores just one week ago, made the new announcement (printed in its entirety below) Monday.
In its filing, Circuit City indicates it will continue to operate its stores and pay its employees — at least, those who won’t be affected by the scaled back operation — normally. It also discussed plans for a full “restructuring plan” to let the business become a profitable venture once again.
Circuit City’s bankruptcy filing mentions additional cutbacks within the company’s corporate headquarters as well, with about 700 jobs being cut on top of the 7,800 positions lost from the closing stores themselves. Overall, the filing says, the workforce will drop about 20 percent. And more cuts could be coming, though with the language used, specifics are still anyone’s guess:
“As part of its restructuring efforts, the company will continue to assess the productivity of all assets, review additional cost-cutting initiatives and explore strategic alternatives to maximize the value of the business.”
You can find a full list of the Circuit City store closings here. The complete bankruptcy filing announcement follows.