Circuit City files for bankruptcy

Circuit City has been losing ground to rival Best Buy

US electronics firm Circuit City has filed for bankruptcy protection, one week after saying it would close about 20% of its stores.

The retailer filed for Chapter 11 protection from creditors at the US bankruptcy court in Richmond, Virginia, where it has its headquarters.

Circuit City has faced tough conditions with consumers cutting spending in the economic downturn.

It has lost money in five of the last six quarters.

The company said it had secured $1.1bn in loans to provide working capital while it was under Chapter 11 protection.

Last week, it said it would shut 155 of its 700 stores by the end of December, cutting 17% of its US workforce.

Circuit City has faced particularly tough competition from Best Buy, which has increased its market share.

Best Buy recently said it would consider buying rivals' closed stores.

In September, Circuit City's chairman and chief executive Philip Schoonover stepped down.