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Just because Circuit City (CC) CEO Phil Schoonover is gone, it doesn't mean the people who hired him and kept him there can't continue to bury this thing...

The WSJ Reports:

Circuit City Stores Inc. is considering a plan to close at least 150 stores and cut thousands of jobs, as an alternative to filing for bankruptcy-court protection, said people familiar with the company.

Earlier this month, the nation's No. 2 electronics retailer by sales hired Skadden, Arps, Slate, Meagher & Flom LLP -- the law firm that oversaw the Chapter 11 reorganization of Kmart -- as its bankruptcy counsel, according to several people familiar with the matter.

Circuit City also retained FTI Consulting Inc. to develop a turnaround plan and investment bank Rothschild Inc. to guide talks with banks and secure emergency financing, these people said.

What bank in their right mind right now would loan them a penny? Who?

In June of 2007 in a post that speculated on the possibility of a Circuit City  bankruptcy, I said, "if the economy slides any further....see ya'.."  In Sept. of 2007 I said they were on the "Bankruptcy Express"

Now, Circuit City did try to help the management that ran it into the ground by lowering the price points on their stock options in a move to keep this incompetent bunch happy. Stunningly, the performance of the company did not improve. Please note the sarcasm...

Nothing has changed from either post. The good news? The company still does have a good brand, and whoever buys it in bankruptcy has a great opportunity to revitalize it. The price that will be paid will be minimal as the competition for it in the current environment will be minimal. That gives a buyer a tremendous opportunity for success. The bad news? If you are a current shareholder you will get nothing. Sorry...

Source: How Can Acting Bankrupt Help Circuit City Avoid Bankruptcy?