Circuit City heads to bankruptcy court

RICHMOND, Va. -- Circuit City is heading into U.S. Bankruptcy Court for a hearing on administrative expense claims and discontinuing its credit card program.

Chase Bank USA is asking the court to break its agreement with Circuit City following the electronics retailer's announcement Jan. 16 that it will liquidate its remaining 567 U.S. stores.

The Richmond, Va.-based company has already stopped taking its own branded credit cards offered through an agreement with Chase and is no longer issuing new cards.

Circuit City entered an agreement with four companies to liquidate the stores. One of the liquidators valued its total retail inventory at $1.8 billion.

The company said going-out-of-business sales should last through March, after which the stores will be closed.