Britain has a pretty tough day. Things went a lot worse across the Atlantic. Circuit City (the biggest US electronics retailer) has filed for bankruptcy protection. The largest electronic retailer in the US is set to file so far in economic turmoil. Circuit City owns around 40,000 staff and 700 stores. 175 of stores will be shut and 6800 employees will loss their jobs in incoming months. The short of credit puts the retailing industry in a big hole.
It makes up the sense that American pay 75% shopping in Circuit City by credit. The difficulty of borrowing from credit left shoppers behind with home loans.
That is not the first case of big retailing company failing. DHL parcel delivery company is closed their inside US delivery service. They already kicked out 9,500 their loyal employees. Companies have no choice to cutbacks.
Best Buy (the biggest competitor of Circuit City) might see the increased market for its business;
FedEx and UP maybe also happy. Reconsidering the economy, the loss of shoppers and business, who will stand the last?
More and more companies are asking for help to avoid bankruptcy. It’s really worrying me. As a bank staff, I wonder whether my bank would be able to sustain the pressure.
Comment by Abang Long — November 12, 2008 @ 2:00 am