Richmond Bankruptcy

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The current economic climate across the United States is rather dire and has resulted from a confluence of factors. These factors mean that the economic hardship is not isolated to any one sector. Unlike in previous downturns where one sector was disproportionately impacted in the current downturn a very wide range of industries and individuals have been impacted. As such the number of bankruptcies going through the court systems is at an all time high. Richmond most certainly has not been spared from this and many bankruptcies are a very common occurrence in Richmond. These bankruptcies are impacting both individuals and businesses alike. One of the most prominent Richmond based bankruptcies, as of late has been the bankruptcy of Circuit City. Due to the tremendous pressure on consumer credit and the fact that individuals are saving more money for fear of job loss this means that consumer discretionary spending has taken a tremendous hit. This also happens to be the area where Circuit City specializes, as consumer electronics are fundamentally discretionary. When you couple this economic climate with the fact that Circuit City is facing fierce competition this made a recipe for disaster. Bankruptcy in Richmond beyond Circuit City is an enormous problem and Circuit City is just the largest of many businesses suffering this fate.

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