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Circuit City: Reports of Samsung Demanding $74M Are Overblown
The request is “typical in a bankruptcy,” according to Circuit City.
Circuit City wants to debunk reports that Samsung America is demanding the return of $74 million worth of products, much of which was probably already sold to consumers.
The reports aren't accurate, according to Bill Cimino, Circuit City's head of corporate communications.
It was reported that Samsung repeatedly asked for products shipped to Circuit City between Sept. 21 and Nov. 4 to be returned because there was reason to believe that the Richmond, Va.-based retailer was insolvent at the time of the shipments.
Circuit City was granted Chapter 11 Bankruptcy protection on Nov. 11.
The reports cite bankruptcy court filings. Cimino says such legal filings, however, are procedural and were expected. In fact, he says Samsung is probably one of the first vendors to officially file for payments owed and that other vendors will almost certainly follow.
Due to Circuit City's Chapter 11 status, it's necessary to file paperwork to ensure payment for goods received just prior to filing.
Samsung's actions "are typical in a bankruptcy in order to file a claim with the court to protect their rights," Cimino tells CE Pro.
"It does not mean that a company is pulling its products. We continue to work with Samsung and our other vendors to get the products we need for our customers."
CE Pro's attempts to reach Samsung have been unsuccessful.
The reports aren't accurate, according to Bill Cimino, Circuit City's head of corporate communications.
It was reported that Samsung repeatedly asked for products shipped to Circuit City between Sept. 21 and Nov. 4 to be returned because there was reason to believe that the Richmond, Va.-based retailer was insolvent at the time of the shipments.
Circuit City was granted Chapter 11 Bankruptcy protection on Nov. 11.
The reports cite bankruptcy court filings. Cimino says such legal filings, however, are procedural and were expected. In fact, he says Samsung is probably one of the first vendors to officially file for payments owed and that other vendors will almost certainly follow.
Due to Circuit City's Chapter 11 status, it's necessary to file paperwork to ensure payment for goods received just prior to filing.
Samsung's actions "are typical in a bankruptcy in order to file a claim with the court to protect their rights," Cimino tells CE Pro.
"It does not mean that a company is pulling its products. We continue to work with Samsung and our other vendors to get the products we need for our customers."
CE Pro's attempts to reach Samsung have been unsuccessful.
Circuit City's Difficult 2008
 | Circuit City to Liquidate Remaining U.S. Stores Four liquidators to sell merchandise in remaining 567 U.S. stores. More than 35,000 jobs will reportedly be lost. Circuit City Receives Approval from Bankruptcy Court Circuit City has received approval for its $1.1 billion debtor-in-possession (DIP) revolving credit facility a day after voluntarily filing for Chapter 11 bankruptcy. Circuit City Files for Chapter 11 Bankruptcy Company says filing will allow it to continue business as usual, paying salaries and benefits and honoring returns and gift cards. Report: Circuit City to Close 155 Stores Big-box retailer is exiting several markets and has hired a team of liquidators to clear out the affected stores Circuit City Reports Non-Compliance With NYSE NYSE to assign ".BC" indicator to Circuit City's symbol to indicate it's below continued listing standards. Is this Finally It For Circuit City? How you can take advantage of the possible failure of the big-box retailer. Circuit City CEO Philip Schoonover Resigns The embattled CE retailer says Schoonover's resignation is effective immediately. He will be replaced by James Marcum. Circuit City Appoints 'Turnaround Executive,' Hints at Sale Company says new vice chairman James A. Marcum is highly experienced at turning retailers around. |
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About the Author
Tom LeBlanc, Senior Writer/Technology Editor, CE Pro
Tom has been covering consumer electronics for six years. Before that, he wrote for the sports department of the Boston Herald. Migrating to magazines, he was a staff editor for a golf publication and an outdoor sports publication. Now, as senior writer/technology editor of CE Pro magazine since 2003, he dabbles in all departments and offers expertise in marketing. Follow him on Twitter @leblanctom.
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