Circuit City Gets a New Lease on Life (Literally)

Circuit City might yet outdo Best Buy on Black Friday deals for another year. Bank of America has given Circuit City a $US1.1 billion loan that'll help cover its operating expenses until it's expected to come out of bankruptcy next year, giving it a second chance. Still, I don't see how even a billion dollars will cover all the money they owe people like Samsung and HP. I mean, I'd be busting some kneecaps if I were them.

Circuit City is over $US2.3 billion in debt. It owes $US119 million to HP and over $US116 million to Samsung—it's not a stretch to imagine they owe double digit millions to Sony and LG too.

Still, will Circuit City use this second chance to make amends like near-death experience survivors normally do, or will it simply relapse into another black hole suckage, so we'll get to do this dance all over again next year? I hope they pull it out, personally—their new releases are always at least a buck or two cheaper than Best Buy, and I can stand being ignored for five minutes to save a dollar. [Bloomberg via Consumerist]