Circuit City in Trouble

[rocketman]

sleazy? no.

Taking advantage of the stupid? yep. And nothing wrong with that.

No argument from me. Best Buy's out to make a buck and they have every right to do so.

 

[ORD_Buckeye]

So Circuit City is hurting for money, so they'll steal your money paid for by credit card and risk endless legal battles?

Um, ok... if you say so.

Uhhh, yeah. If they go into bankruptcy, any consumer would be just another "unsecured creditor," which means that you'd be at the end of the line for any compensation out of the company's asset base. A highly oversimplified rule of thumb for payment is Feds first, Secured Creditors second and anything left over divided up among the unsecured creditors.

I've had companies go out of business owing my company a lot of money. If you're an unsecured creditor, you can count on getting pennies on the dollar from the bankruptcy court--even then, you'd go into an unsecured creditor pool from which some very high end corporate bankruptcy attorneys would skim their $500/hour fees off the top.