The Chronic Consumer

Well, this isn’t great news for Circuit City, especially with the start of the holiday shopping season right around the corner. I just read a Wall St. Journal report saying that Circuit City’s board of directors is considering closing “at least 150 stores” across the country and eliminating jobs as part of an overall turnaround effort.

The Circuit City store closings haven’t been officially announced yet, nor has there been any official bankruptcy filing. But since the company is having trouble finding anyone willing to step in with emergency cash to help get them through these tough times, bankruptcy is probably not that far off.

As I said, this is not very encouraging news for the beginning of the holiday shopping season. I don’t know about you, but I personally tend to stay away from stores that are hovering on the brink of bankruptcy. I would imagine that lots of people act the same way, so I’m not sure how possible a turnaround is at this point.