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Pachulski Stang Hired to Represent Creditors in Circuit City Chapter 11 Case

November 18, 2008

Pachulski Stang Ziehl & Jones LLP was hired to serve as bankruptcy counsel by the official committee of unsecured creditors of Circuit City Stores, Inc. On November 10, Circuit City filed its chapter 11 bankruptcy petition in the United States Bankruptcy Court for the Eastern District of Virginia (Richmond Division).  One week before the bankruptcy filing, Circuit City announced the closing of 156 locations, coupled with a planned liquidation of those stores' inventory.  Circuit City is a consumer electronics retailer with more than 600 locations in the United States.  At the time of the bankruptcy filing, the company owed its secured lender (Bank of America) almost $800 million, and also owed its trade vendors approximately $650 million.  The creditor's committee has 11 members.