On November 10, 2008, electronics retailer Circuit City declared Chapter 11 bankruptcy and laid off about 20% of its workforce. This announcement comes on the heels of the company's early-November decision to close 155 stores across the U.S. The company's remaining stores stayed open for the holiday shopping season.Bloomberg: Circuit City, Electronics Retailer, Seeks Bankruptcy (November 10, 2008)

In January 2009 Circuit City announced it would liquidate all 567 of its stores after failing to find a buyer or a refinancing deal.Fox 12: Circuit City to liquidate remaining US stores (January 16, 2009) On January 17, 2009, going-out-of business sales began at Circuit City retail outlets nationwide.Bloomberg: Circuit City Starts Going-Out-of-Business Sales at U.S. Stores (January 17, 2009)

According to analysts, Circuit City's losses stem from competition from "big-box" retailers such as Wal-Mart as well as online electronics retailers like Amazon.com. The overall downturn in the economy and the stock market, which began in the summer of 2008, also contributed to Circuit City's insolvency. The company's acting CEO, James Marcum, was hired to help the company through its restructuring as he has done for other companies during their bankruptcy proceedings.Bloomberg: Circuit City, Electronics Retailer, Seeks Bankruptcy (November 10, 2008)

"We recently have taken intensive measures to overcome our deteriorating liquidity position. The decision to restructure the business through a Chapter 11 filing should provide us with the opportunity to strengthen our balance sheet, create a more efficient expense structure and ultimately position the company to compete more effectively. In the meantime, our stores remain fully operational, and our associates are focused on consistent and successful execution this holiday season and beyond."—Circuit City CEO James Marcum in a November 10, 2008, press releaseCircuit City: Circuit City Stores, Inc. to Reorganize Under Chapter 11 (November 10, 2008)