Circuit City, HaroldÂ’s file for bankruptcy

Two additional retailers in very un-alike markets — electronics vendor Circuit City Stores Inc. and Harold’s Stores Inc., a 19-state chain of clothing shops — have bitten the dust in the extended wake of the nationwide economic crisis. The overall crisis so far has killed off some of the country’s largest banking institutions and cost nearly every industry billions.

Richmond, Va.-based Circuit City filed for Chapter 11 bankruptcy protection Nov. 10. Dallas-based HaroldÂ’s made its move Nov. 7. Both retailers have struggled with increasingly competitive markets during several months of reduced business as consumers have cut back on spending.

Circuit City filed for bankruptcy just one week after it announced 155 store closures — including stores in Dallas, Mansfield and Burleson — and immediate cuts on spending and store openings. Earlier this year, the company had entertained a $1.33 billion buyout offer from Blockbuster Inc., but talks fell through after the latter determined the merger was not a good deal. Circuit City has more than a dozen locations in the Metroplex, including Fort Worth, Arlington, Lake Worth and Southlake storefronts.

Circuit City shares had dropped 94 percent before MondayÂ’s bankruptcy filing.

Meanwhile HaroldÂ’s, fresh off $1.8 million in extra financing in September, filed for bankruptcy after 60 years in business. The Oklahoma-born, high-end clothing retailer, facing stiff competition from a bevy of other like-minded business models, had posted a net loss of $9.7 million for fiscal year 2007.

jtronche@bizpress.net