Today, Circuit City announced they would be closing all 567 of their stores and laying off approximately 34,000 people by March of 2009.
And, apparently, the company’s failure is largely due to debt.
From the article:
Circuit City had been seeking a buyer or a deal to refinance its debt, but the hobbled credit market and consumer worries proved insurmountable.
In some rare cases debt is beneficial. But in most cases it is almost always worth avoiding. It has the power to bankrupt both individual citizens… and massive companies like Circuit City.
Maybe debt will finally start getting the respect it deserves — the kind that keeps its distance.
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