Circuit City gets OK for funding
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RICHMOND, VA. — Crcuit City Stores Inc. received final approval Monday for $1.1 billion in financing to keep operating while the nation’s second-biggest electronics retailer is under bankruptcy protection.
A U.S. bnkruptcy judge approved the financing, which replaces a $1.3-billion asset-backed loan the Richmond company had been using. The new loan will be used to stock merchandise and pay employees. The retailer filed for bankruptcy last month as it faced pressure from vendors and less consumer spending.
Since the filing, sales are down 40% to 50%, said Gregg Galardi, a lawyer for Circuit City.
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