Circuit City Owes Home Entertainment Industry $56M11 Nov, 2008 By: Erik Gruenwedel
Bankrupt Circuit City Stores owes home entertainment studios and related distributors more than $56 million in accounts payable for DVD movies and television programming, according to a court filing.
Specifically, the Richmond, Va.-based No. 2 consumer electronics retailer owes DVD and music CD distributor Alliance Entertainment $15.8 million, Paramount Home Entertainment $13.7 million, Warner Home Video $10.7 million, 20th Century Fox Home Entertainment $5.8 million, Walt Disney Studios Home Entertainment $3.7 million and Sony Pictures Home Entertainment $3.7 million.
The chain also owes packaged media distributor Navarre Corp. $2.5 million.
Representatives from the studios and distributors were not immediately available for comment.
The debt relatively pales in comparison to accounts payable owed to several consumer electronics, TV and PC manufacturers, including Hewlett Packard with $118.8 million, Samsung Electronics with $115.9 million, Sony Electronics with $60 million, Zenith Electronics with $41.1 million, Toshiba America with $17.9 million, Panasonic North America with $13.2 million, Microsoft Corp. with $8 million, Sharp Electronics with $7 million and Vizio with $6.9 million, among others.
“No one in the industry likes to see what’s happening with Circuit City, and together we will all try to get through it,” Andy Parsons, SVP, advanced product development, Pioneer Electronics, told attendees Nov. 11 at the HD-3 high-definition conference, presented by Home Media Magazine, in Century City, Calif.
Circuit City owes Pioneer $2.3 million in accounts payable.
The retailer, which filed for Chapter 11 protection Nov. 10 listing more than $2.3 billion in debt, received approval for a $1.1 billion debtor-in-motion revolving credit facility from current creditors during first-day motions rendered by the U.S. Bankruptcy Court for the Eastern District of Virginia.
The retailer said it would remain open during the fiscal restructuring.
“These approvals will help position us for a more successful holiday selling season,” James Marcum, vice chairman and acting president and CEO, said in a statement.
Separately, the New York Stock Exchange suspended Circuit City’s common stock effective immediately. The shares, which had been in non-compliance with the NYSE’s $1-per-share price criteria over a consecutive 30-day business period, are now traded over-the-counter under the ticker symbol CCTYQ.