Posted by Colby Rogers - email
RICHMOND, Va. (AP) - Circuit City's bankruptcy could ripple across the U.S. economy for years.
Richmond-based Circuit City is bigger by far than any other retailer that has gone under in the current recession.
The closure of its 567 stores will leave 18.71 million square feet of vacant space in a faltering real estate market. More than 40,000 workers will be jobless, including 7,000 laid off last year.
Shopping centers will lose rental income. Suppliers will lose display space. Newspapers already struggling with falling ad revenues will have one less insert in their Sunday editions.
Cell phone provider Verizon and cable company Comcast will have to shut down hundreds of mini-stores inside Circuit City locations.
But some companies stand to gain from Circuit City's dissolution, including competitor Best Buy.
Analysts have said they think Best Buy can easily capture up to 30 percent of Circuit City's revenue.