Circuit City Gets a New Lease on Life (Literally) [Circuit City](4)
Circuit City might yet outdo Best Buy on Black Friday deals for another year. Bank of America has given Circuit City a $1.1 billion loan that'll help cover its operating expenses until it's expected to come out of bankruptcy next year, giving it a second chance. Still, I don't see how even a billion dollars will cover all the money they owe people like Samsung and HP. I mean, I'd be busting some kneecaps if I were them.
Circuit City is over $2.3 billion in debt. It owes $119 million to HP and over $116 million to Samsung—it's not a stretch to imagine they owe double digit millions to Sony and LG too.
Still, will Circuit City use this second chance to make amends like near-death experience survivors normally do, or will it simply relapse into another black hole suckage, so we'll get to do this dance all over again next year? I hope they pull it out, personally—their new releases are always at least a buck or two cheaper than Best Buy, and I can stand being ignored for five minutes to save a dollar. [Bloomberg via Consumerist]
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