In 2008 Circuit City filed bankruptcy, leaving Best Buy as the remaining entity under the business model both had used: Selling consumer electronics in large retail stores. Best Buy has survived but it hasn't thrived. Store sales have fallen in each of the last eight fiscal quarters. Many observers feel it's only a matter of time before Best Buy faces the same fate as Circuit City.
The problem Best Buy faces is the same as that faced by most large retailers, that of competition from online retailers such as Amazon, eBay and even Walmart.
If you got a Best Buy gift card for Christmas you might want to use it soon. If Best Buy files bankruptcy, holders of gift cards become unsecured creditors and the likelihood of getting anything back as an unsecured creditor is virtually nil.
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