BAD NEWS FOR CIRCUIT CITY AND DHL!

JUST AS YOU WERE ABOUT TO SNAP UP THAT 25 CENTS A SHARE (CIRC CIT) STOCK!

With the holiday season fast approaching, the nation’s second-biggest electronics retailer is struggling to avoid getting unplugged.
One week after announcing it would close 155 of its stores, Circuit City (CC, news, msgs) filed for Chapter 11 bankruptcy protection today and said it would cut 700 additional jobs.
However, the electronics chain said it plans to stay open for business as the busy holiday shopping season approaches. Chapter 11 of the bankruptcy code allows a company to hold off creditors and continue operations while it develops a reorganization plan.
The chain had already announced thousands of layoffs associated with the store closures, which amount to roughly 20% of its retail outlets.
The Circuit City announcement was one of two big pieces of news today highlighting the weak state of the U.S. economy. From Germany, Deutsche Post announced that it will close all of its DHL Express service centers, cut 9,500 jobs in the United States and eliminate U.S.-only domestic shipping by land and air.
The company cited heavy losses and fierce competition with rivals UPS (UPS, news, msgs) and Fedex (FDX, news, msgs). It noted that new job cuts — part of a wider plan to curtail U.S. operations — are in addition to 5,400 it already announced.