It seems like the problems for Circuit City will continue even as they file for protection under the bankruptcy laws. There is just one small problem. Circuit City owes their suppliers huge chunks of change and if the suppliers stop delivery to Circuit City, it may be all over the the electronic retailer. According to a Korean Times article, it also states that:
Samsung and the four other largest suppliers of Circuit City ― Sony, Hewlett-Packard (HP), Toshiba and Canon USA ― provided about 47 percent of goods sold at the outlet chain in 2007.
Samsung, which sells almost all kinds of its key products ranging from flat-screen TVs to home appliances through Circuit City, is the store’s second-biggest unsecured creditor after HP.
Circuit City owes Samsung nearly $116 million in unsettled payments. HP is moving to terminate a contract with the vendor, according to sources.
“Samsung’s withdrawal can further aggravate Circuit City’s financial problems,” the source said.
What do you think? Will CC make it or not?
Comments welcome.
Bad management