Samsung to Circuit City: Payback's a Bitc. . .

Circuit City has a long list of problems -bankruptcy and store closings are probably tops. Well, Samsung just added to their worries.

According to a U.S. bankruptcy court filing, Samsung is demanding that Circuit City return nearly $74 million in consumer electronics. Merry Christmas.

Although Circuit City filed for Chapter 11 protection back in November, Samsung claims that the stores were insolvent at the time they received the goods.

What makes it worse is . . .

Circuit City Receives a Lifeline

Circuit City is not going down without a fight. Just a day after filing Chapter 11 bankruptcy, Bank of America comes to the rescue. To the tune of $1.1 billion. Yowza.

Not sure if that's even going to be enough — the company is $2.3 billion in debt, owing billions to companies like LG, Samsung, and Sony. Not exactly companies you want to blow off.

This credit line is hoped to be enough to pay salaries and secure new merchandise to carry the store until it's expected to get out of debt next year.

See more details . . .

Circuit City Files Chapter 11: Women and Children First

Just days after announcing that they're shutting down 155 stores and laying off thousands of employees, Circuit City just took another step towards the deep end of the pool. Today, Circuit City filed for chapter 11 bankruptcy.

Chapter 11 holds off creditors, temporarily. Circuit City has negotiated a commitment for a $1.1 billion "debtor-in-possession revolving credit facility to supplement its working capital," according to a report on CNET.

In addition to those layoffs, another 700 positions are looking at pink slips.

Ever the optimist, see what CEO James A. Marcum had to say.

Blu-ray Bargains: How Low Will They Go?

Feeling lucky? How lucky? Do you wait until Black Friday to pick up a Blu-ray player for a great price, or trust that the price at the floundering Circuit City will be your best bet? For a limited time (guessing at that — they're listed in the "Outlet" section of the store) the Sony BDP-S300 is available for a mere $176.96. Or, do you wait?

Circuit City isn't the only retailer with pre-Black Friday bargains . . .

Circuit City Shrinks Self

Things are tough, especially in consumer electronics. Circuit City is really taking it on the chin. As we previously reported, the rumor was that CC was going to close stores to try to stay afloat. Now, that rumor has become reality.

It was officially announced that Circuit City will close 155 domestic stores and lay off 17% of its workforce. The official statement: "Due in part to its deteriorating liquidity position and the continued weak macroeconomic environment, the company has decided to take certain restructuring actions immediately, including closing 155 domestic segment stores, reducing future store openings, and aggressively renegotiating certain leases."

The company was caught in the same squeeze the rest of us are feeling: "The sharply worsened overall economic environment led some of Circuit City's vendors to take restrictive actions with respect to payment terms and the credit they make available to the company." The company also said it has been unable to collect an income tax refund of approximately $80 million that the company believes the feds owe them. Been there, done that.

Circuit City, Cutting Off Nose?

You know the saying, cutting off your nose to spite your face? You have to wonder if Circuit City might have done the same. We reported earlier this week that the mega-retailer is going to shut down 150 stores and is laying off thousands of employees.

We blamed the economy. But we have to wonder if something else was behind their downward spiral.

Circuit City; Trimming the Fat

Circuit City is getting lean and mean. Cutting the fat, drastically, so to speak. In perhaps a last ditch effort to stay afloat, the second biggest consumer electronics brick-and-mortar retailer is closing at least 150 stores.  That's huge — about 20% of the 712 stores located in the U.S.

Thousands of employees will lose their jobs because of the closings and, according a story in the Wall Street Journal, they'll liquidate $350 million in consumer electronics inventory.

What's behind the closings?

Blockbuster Bails on Circuit City Buyout Bid

Talk about a slap in the face. After making a bid for Circuit City, supposedly for over $1 billion, Blockbuster has changed its mind. Siting "market conditions," Blockbuster has withdrawn its $1.3 billion bid. There's no word yet from Blockbuster's Carl Icahn who had previously stated that he would buy Circuit City himself if Blockbuster couldn't secure financing. Perhaps he's taking a closer look too, and not liking what he's seeing. What made Blockbuster step away from the negotiation table?

What a Dad Wants

What did you get your dad for Father's Day this year? Another crappy tie? Ugly coffee mug? Electric shaver? Wouldn't you like to know exactly what dear old dad wants?

Circuit City did just that. They surveyed 4,100 fathers, and the results are out just in time for Father's Day shopping.

So, what did the survey say?

FCC Strong-arming Retailers

Circuit City can't catch a break. The FCC just slapped the struggling retailer with a whopping $712,000 fine for violating an FCC rule. In order to forewarn consumers about the February blackout of analog TV, the FCC is requiring retailers to put up signs in stores that sell analog TVs. These signs will alert consumers that after the switch, their televisions will no longer work without converter boxes to receive broadcast signals. Seems like a good rule, right?