RICHMOND, Va.–Circuit City, under Chapter 11 bankruptcy protection since Nov. 10, has received approval from the bankruptcy court here for $1.1 billion in debtor-in-possession financing.
The approval came at a hearing in the court yesterday. According to Douglas Foley, attorney with McGuireWoods of Norfolk, Va., and one of the attorneys representing the retailer, the financing will be used to pay Circuit City’s expenses incurred in the ordinary course of business.
Circuit City announced early in November that it would close 155 of its stores. In an interview with HFN this morning, Foley said no additional store closures are planned at this time. A report last week said Circuit City had announced additional store closings, but the retailer issued a statement last Thursday denying the report.
Foley also said Circuit City is working on its plan of reorganization. The company has 120 days from the date of its Chapter 11 filing to submit a plan to the court.