Circuit City files for bankruptcy

RICHMOND, Va., Nov. 10 (UPI) -- Electronic retail giant Circuit City Inc. said Monday it had filed for Chapter 11 bankruptcy protection in a federal court in Richmond, Va.

The retailer, which operates 712 domestic superstores and nine outlet stores and 770 stores in Canada, "plans to continue operating the business without interruption," the company said in a statement.

To cover its international business, Circuit City is also filing for credit protection in Canada, the statement said.

In its requests to the court, the company has asked to continue with wages to employees and retail programs, such as "returns, exchanges and gift cards." In addition, Circuit City has negotiated a $1.1 billion debtor-in-possession credit facility to cover its near-term operating costs, the company said.

"The facility provides additional immediate liquidity while the company works to reorganize the business and will permit the company to pay vendors and other business partners for goods and services received after the filing," the company said.