Monday, Circuit City Stores Incorporated filed for bankruptcy protection, reasoning that several vendors had threatened to halt delivering products during the upcoming holiday season.

The decision has come only one week after the second-biggest electronics retailer in the United States announced they were closing down 155 stores throughout the nation, which is about 20 percent of the total number of their stores.

Moreover, the measure entailed that the Circuit City work force was also to be reduced by 17 percent by December 31, when pulling the plug on the stores has been scheduled.

The company informed Monday that they had additionally cut 700 jobs at their headquarters, all the actions being aimed at getting Circuit City through the holiday season.

Both their U.S. and Canadian operations have filed for bankruptcy protection, which allows them to continue doing business while they develop a new organizational strategy to help them reposition the consumer electronics retailer.

Circuit City has not had a good year in terms of income, with only one profitable fiscal quarter and their shares on the stock market having gone down by 56 percent, to 11 cents this Monday. In addition, since according to the New York Stock Exchange (NYSE) the company’s shares have had a closing price under $1 over 30 consecutive days, they have no longer been listed on the market.

Court filings for bankruptcy protection read that the main reasons that stood behind Circuit City’s decision had been erosion of vendor confidence, decreased liquidity and the global economic crisis.