Since the end of May, Circuit City’s stock has lost about 87% of its value; the company has fired its CEO, lost a $1.3 billion takeover offer from Blockbuster, and posted quarterly losses of $239.2 million. Now the Washington Post says that the company lost a recommendation from a firm that advises manufacturers on whether to ship goods to retailers – meaning that Circuit City may be having trouble paying its vendors. Are they ready to go under?
Motley Fool thinks so. They placed Circuit City at the top of a short list of retailers that you could “kiss goodbye.”
The new CEO recently hired some independent advisers who will presumably work to save the company from itself, but is it just too late?
Circuit City’s shares are currently trading at $0.42. You might want to use up your remaining gift cards… just in case.