Circuit City filed for Chapter 11 bankruptcy protection on November 10, 2008, after years of declining sales and increasing competition from online retailers.
Founded in 1949 as Wards Company, the chain became one of the largest electronics retailers in the United States. It was known for selling televisions, computers, appliances, and car audio equipment. Its bankruptcy came during the 2008 financial crisis, which made consumer spending and access to credit more difficult.
Circuit City closed 155 stores shortly before filing and later announced plans to shut all remaining stores. The liquidation was completed in early 2009. A new company later revived the Circuit City brand, but it did not recreate the original nationwide store network.
The bankruptcy is often discussed alongside the decline of other big-box retailers. Circuit City’s collapse was caused by several pressures, including online competition, changing product prices, management decisions, and weak consumer demand.