Circuit City: Reports of Samsung Demanding $74M Are Overblown

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.