Circuit City is the second consumer electronics store in the United States. It was inducted into Fortune 500 and has over 670 Superstores in both the United States and Puerto Rico. Except for the Superstores, Circuit City also has another 13 locations in the aforementioned areas.

A Superstore can have between 15,000 and 45,000 square feet. Circuit City is specialized in the distribution of consumer electronics, personal computers and entertainment software from some of the best-known brands. Except for the United States, Circuit City also operates over 850 stores in Canada.

Unfortunately, the financial crisis seems to be affecting all businesses, at least in the United States. In light of the developments, Circuit City has filed for bankruptcy protection today, Monday November 10th. Circuit City has therefore become the largest retail company to file under Chapter 11 in 2008 – at least until now. The company is also missing out on the winter holiday season, which is without a doubt the biggest blessing for sellers everywhere.

It seems that the reason for which Circuit City decided to file for bankruptcy was caused by the tighter credit terms imposed on vendors because of the economic crisis.

Also, the stock market shows that Circuit City suffered market share loss, in favor of its biggest low-price rivals, such as Best Buy and Wal-Mart. One week before filing for bankruptcy, Circuit City had announce that it will close over 150 stores and let go of 17% of its United States staff. Best Buy, on the other hand, have said they are interested in acquiring the stores abandoned by its rivals.