US retailer turns to suppliers for aid after fall in sales

1 October 2008
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02 October 2008 | Jake Kanter

US electronics retailer Circuit City is relying on its suppliers for financial support after a sharp drop in sales revenue.

Speaking earlier this week as the company announced its second quarter results, Bruce Besanko, chief financial officer at the firm, said vendors were key to improving Circuit City's cash flow.

"From a liquidity perspective, the key issue for us is our vendors. We continue to do everything we can to ensure the continued support from our vendors, particularly our largest," he said.

"We routinely speak with them, certainly on a weekly basis and for the most part we keep them in the loop in terms of our performance." He added it is in the interests of suppliers to see the company do well because it holds a strong position in the market.

The company posted disappointing results, seeing its sales figures fall nearly 10 per cent to $2.4 billion. James Marcum, CEO of Circuit City, said the figures were "unacceptable".


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