How does Circuit City have TV commercials now if they went bankrupt?
I dont get how all these companies that went out of business, bankrupt, or Chapter 11 and still seem like they are alive and doing business? Does bankruptcy mean something different than what I think? I dont get it
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There are different kinds of bankruptcy….there is the closing up, selling out to the walls, I’m outta here kind (Chapter 7) and there is the give me some breathing room and keep my creditors at bay while I try to reorganize and make enough money to keep going kind (Chapter 11).
Circuit City is in Chapter 11 bankruptcy. They are not closing. Yet. They are trying to hang on….to do that they need to be able to not pay their vendors for a bit and still get merchandise for the holiday season.
That being said, I personally would not buy anything from Circuit City that you might need to return.
Info on different types of bankruptcy
Snoopy explained things perfectly. Circuit City is not totally out of money. [yet] They are merely in a slump and just need a little help getting out of it.
I just spoke to a friend of mine who is in one of the said commercials. His reasoning (which makes sense to me), is that the ad buys for the timeslots were bought a while ago.
I’d imagine that for circuit city at least some of the ad buys were during the up-fronts.
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