Circuit City makes no headway with creditors

Earlier today, officials from Circuit City Stores Inc. met with creditors in a meeting that lasted less than 15 minutes and covered no new ground.

This morning's hearing ran short as the specter of a possible sale or liquidation hung over the proceedings. Bruce H. Besanko, the chain’s executive vice president and chief financial officer, declined to talk about company's plans.

During testimony, he said Circuit City ran into trouble in the fall as the growing economic troubles kept customers out of stores.

At about the same time, he said, vendors that supply the chain’s stores with merchandise began to tighten credit arrangements, making it difficult to continue doing business.

Asked what management decisions could have led to the company’s downfall, Besanko said it’s "not fair to criticize prior management."

He testified before Robert Van Arsdale, an assistant trustee for the court. About a dozen people attended.

The hearing at the federal courthouse in Richmond was held so Circuit City could talk to creditors about terms to settle outstanding debts.

Contact Louis Llovio at (804) 649-6348 or .