Circuit City files for bankruptcy

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The Independent Online

Circuit City, the second largest electronics retailer in the US, has filed for bankruptcy, owing $2.3bn to more than 100,000 creditors.

After years of losing market share to rival Best Buy, to internet re-sellers and to supermarkets such as Wal-Mart, the company was finally pushed over the edge by the credit crisis and a slump in consumer spending. Electronics manufacturers Sony, Hewlett-Packard and Samsung are among its biggest creditors, its filing revealed yesterday. A week ago, the company said it was shutting 155 stores, one-fifth of its estate.