Is Circuit City going out of business? Over the last week or so, there have been lots of questions regarding gift card redemption from Circuit City. The questions are based on rumors of the company being on the verge of bankruptcy.
Even though the company was on a recent list of retailers at risk of going under during the recession, i do not believe the company is going to file for bankruptcy soon unless the current offer from Blockbuster to buy Circuit City falls through. If the deal falls through, Circuit City will be under a lot of pressure to do something dramatic to turn itself around. In the absence of a plan, and if the company continues to burn cash, they will have no choice but to file for bankruptcy protection.
As I have recommended before, if you currently hold a Circuit City gift card, now is the time to use it or risk losing it should the company go under. I would also not recommend buying a Circuit City gift card until the dust clears.
Readers, what are your thoughts about Circuit City and rumors about the company? Post your comments in the comments section below.