Contentinople - Erin Barker - News Bits: Circuit City Files for Chapter 11

Written by Erin Barker

Monday, November 10. 2008 at 11:20 AM EST Post a comment

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Circuit City Stores Inc. , the second-largest consumer electronics chain by revenue in the U.S., has filed for bankruptcy today, after announcing last week that it would close 20 percent of its stores.

It's no surprise -- the company has been plagued by tough competition from Best Buy Co. Inc. (NYSE: BBY) and Wal-Mart Stores Inc.

The big-box retailer has garnered $898 million worth of debt, owed to more than 100,000 creditors, most prominently Hewlett-Packard Co. (NYSE: HPQ), Samsung Electronics Co. Ltd. (Korea: SEC), and Sony Corp. (NYSE: SNE).

Of course, sympathetic Best Buy has suggested that it "might take over stores that distressed rivals close," The New York Times says.

In other news:

Google (Nasdaq: GOOG) has just signed the biggest publishing deal ever to create the biggest bookstore ever. Last week the search giant signed an agreement with authors and publishers to make millions of out-of-print books available online within the Google Book Search program.

Dell Inc. (Nasdaq: DELL) has decided not to launch its planned digital music player this holiday season and has also lagged in pre-holiday releases of new notebooks. This is all despite Michael Dell's promise last year that the company would come up with innovative new products to generate "product lust," The Wall Street Journal reports. "It really does feel like there's a lack of momentum," said Roger Kay, an analyst with Endpoint Technologies.

Tags: Google, Search, Technology

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