USA: Circuit City facing bankruptcy

Circuit City has filed for Chapter 11 bankruptcy protection, but the firm has promised to continue trading over the Christmas period with the assistance of a $1.1 billion debtor-in-possession revolving credit facility.

Making the announced, vice chairman and acting president and chief executive of Circuit City, James Marcum said: "We recently have taken intensive measures to overcome our deteriorating liquidity position."

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The move comes in the wake of recently announced store closures, and an abandoned takeover bid from Blockbuster.