Circuit City operating loss improves; $1.50 million posted for August

By Alice Popovici

New York, Oct. 15 - Circuit City Stores, Inc. reported a $1.50 million operating loss for August on zero net sales, according to its monthly operating report filed Thursday with the U.S. Bankruptcy Court for the Eastern District of Virginia.

In comparison, the company posted a $4.65 million operating loss for July, also on zero net sales. The figures show significant improvement over the $421.75 million operating loss recorded in June, also on zero net sales.

As previously reported, Circuit City said in June that it attributed the significant loss to asset impairment charges, stating that the company recorded a non-cash impairment charge of $417.1 million for its investment in its Canadian subsidiary.

The net loss for August was $2.31 million, down from $12.59 million in July and $424.02 million in June.

Circuit City had $35.51 million in cash and cash equivalents at Aug. 31, down from $40.29 million at the end of July and $52.01 million at the end of June.

The Richmond, Va., electronics retailer filed for bankruptcy on Nov. 10, 2008 in the U.S. Bankruptcy Court for the Eastern District of Virginia. Its Chapter 11 case number is 08-35653.

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