Circuit City will not pass go on its way to the garbage heap. Despite rumors that it had found outright buyers for its stores, including such PE companies as Golden Gate Capital and Ricardo Salinas Pliego, Circuit City today filed a notice in bankruptcy court that it has hired liquidators and is unable to reach a pact with creditors. In a trend proudly started by Apollo portfolio company Linens 'N Things, retailers seem to have given up on reorganizing in chapter 11 and go outright to 7. This fits with our assumption that Chapter 7 is the new 11. Circuit City's bankruptcy case is 08-35653 in Eastern Virginia Bankruptcy Court.Hopefully this means that the Circuit City store on 42 and 5th will finally have some good deals.
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2 comments:
But should SOX Section 304 be utilized to compel the executives responsible for CC's restatement last year be compelled to pay back their ill-gotten bonuses?
How about forcing execs at all bankrupt companies to follow the 2005 exec comp amendments and pay back stuff especially when they took out loans against stock
http://files.ali-aba.org/thumbs/datastorage/lacidoirep/articles/CMJ_CMJ0612-WINTNER_thumb.pdf
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