Richmond, Va. - One week after announcing plans to close 155 stores, consumer electronics retailer Circuit City Stores (NYSE: CC) on Monday filed for Chapter 11 bankruptcy protection. The company said that it plans to continue operating under a $1.1 billion debtor-in-possession credit facility -- which will allow it to pay vendors and other business partners -- while working to restructure its operations.

In a statement, the company said that the move will allow it to "secure ongoing vendor support and to ensure adequate merchandise flow to stores during the important holiday season."

Last week, the company announced plans to close more than a fifth of its stores and cut roughly 700 jobs from its corporate headquarters staff.

"We recently have taken intensive measures to overcome our deteriorating liquidity position," said James Marcum, Circuit City's vice chairman and acting president and CEO.

"The decision to restructure... should provide us with the opportunity to strengthen our balance sheet, create a more efficient expense structure and ultimately position the company to compete more effectively."

As of Aug. 31, the company had $3.4 billion in assets and $2.3 billion in liabilities.

Related Links:
http://investor.circuitcity.com/releasedetail.cfm?ReleaseID=346614