Troubled electronics retailer Circuit City Stores Inc. filed for Chapter 11 bankruptcy Monday in an effort to stay ahead of lenders owed $898 million. With going-out-of-business sales already in full swing at about 20% of its outlets, the nation’s second-largest consumer electronics chain by revenue says it has an immediate need for financing. The company cited erosion of vendor confidence and consumer retreat in the face of the global economic crisis for the bankruptcy filing.
The housing mess is now a full-blown blowup in consumer debt.
