Circuit City files for bankruptcy; bargain hunters, beware

Just a week after announced it would shutter 155 stores and shed 17 percent of its workforce, the big-box retailer files for Chapter 11 bankruptcy protection. But if you're thinking it's a great time to snap up some bargains, think again.

Reuters reports that Circuit City Stores Inc. filed for bankruptcy Monday morning, a little more than two weeks before the holiday shopping season officially kicks off.

For now, Circuit City is still looking to recover by restructuring its operations, so don't declare the electronics chain dead quite yet; that said, its stock was trading at just 11 cents Monday morning. Not good.

Now, say the word "bankruptcy" and bargain hunters (hey, myself included) immediately think "fire sale." And with the holiday shopping seasons right around the corner, the news couldn't have come at a better time. (Of course, the hundreds of freshly laid-off Circuit City employees would probably beg to differ.)

But before you start picking around for deals at a soon-to-close Circuit City location—especially if you're in the market for an HDTV—read this story from the HD Guru first. Among his various points: Some closeout sale prices are actually higher than the prices listed on the main Circuit City Web site, and sales at shuttering locations are final—no refunds or exchanges.

If you're still thinking of swooping in for a cheap HDTV or Blu-ray player, consider bringing a printout of prices on CircuitCity.com (or competing retailers, for that matter) while you shop, and quiz the clerks carefully about returns/refund policies before you plunk down a credit card.

Related:
Circuit City files for Chapter 11 bankruptcy [Reuters]
Circuit City Liquidation Sale Price Switch-Can You Beat It or Will It Beat You? [HD Guru]