subject: America's Second Largest It Store Closures Due To Lenovo's 11 Million U.s. Dollars [print this page] Lenovo insiders say, not too much on the Circuit City bankruptcy nervous, because of their status in the U.S. electronics retail industry is not too high.
The nation's second-largest consumer electronics chain, "Circuit City" (Circuit City StoresInc.) Efforts to save the fate of the final burst bankruptcy.
17 days, failing to reach an agreement and the creditors and lenders, also could not find a buyer in time, "Circuit City" that will be forced to liquidate assets in the United States fell in the financial crisis first large e-retail business. To include many, including PC and Lenovo
Digital Manufacturers is the object of its debts, Lenovo's 11 million U.S. dollars loan to be difficult so far discussed.
U.S. retail giant overwhelmed CircuitCity has 59-year-old once in the United States has more than 670
Home Appliances Sub-product supermarket retail sales in Canada has 850 stores. However, under the impact of financial crisis, this retail giant overwhelmed. Last year early in November, CircuitCity announced the closure of 155 stores and laid off 17% of the employees, but failed to turn the tide. Currently, has filed for bankruptcy protection "circuit city" have to sell the remaining 567 stores all the goods the United States. In the United States and Canada, 30,000 employees lose their jobs.
Impact not only in North America. As the 15 countries in the world has 7500 supplier of electronic products, many by surprise suppliers can exchange earnings are facing the enormous risk.
Seek to minimize their losses Lenovo
Circuit City's creditors appeared on the list of the names of all the major manufacturers, HP's largest creditor, owed amounted to 118.2 million U.S. dollars, Circuit City, on the second-largest creditor
Samsung The debt has reached 115.9 million U.S. dollars, in addition to, Lenovo,
Sony , Toshiba, Kodak, Mitsubishi and other companies are subject to the repercussions of bankruptcy Circuit City, Circuit City, they are all waiting for the return of 10 million yuan and above the huge amount of money.
Yesterday, the Beijing Morning News reporters Cong Lian and Xiang Neibu to Department informed that Circuit City on the association's debts amounted to 11 million U.S. dollars, the figure is one-third of Lenovo's net profit last quarter, for the next quarter, Lenovo to Pre-losing said that more than small numbers. "In fact, a few weeks before the incident occurred before we know the sound of the wind so very timely choice of the out of stock." Lenovo insiders told journalists. As for Circuit City is also on the money when it can, Lenovo is the official statement: "Our two companies have reached an agreement together to find ways to minimize their losses."
Suning China's retail environment that is good
However, the association's insiders also suggest, without too much on the Circuit City's bankruptcy tension, he evaluation of Circuit City's position in the U.S. electronics retail industry, said: "China has not yet reached
States United States Suning, Dazhong, as it can be said. "Reported that the electronics store is taking the" customized "marketing line, the size of each of its stores are not large, but always found the design very personalized widgets." U.S. electronic store is relatively stable, Circuit City to shut down rather special, should not appear the phenomenon of successive crash, PC manufacturers have still have confidence. "
Suning CEO Sun Weimin also Beijing Morning Post said that the situation of the U.S. retail chain in China's home appliance industry are not comparable. "'Circuit City' due to the bankruptcy of major operational problems of its own." Sun Weimin said that as a huge market capacity and other factors, China's retail environment, much better than abroad, the overall economic downturn's effect on retail businesses too small for.
Information: Barron: Circuit City, Best Buy closed down to make benefit
Electronics retailer settlement of financial crisis, "closures"
