Circuit City Gets Final Approval for Financing

Richmond, Va. Circuit City Stores received final approval Monday for $1.1 billion in financing in order to keep operating while in Chapter 11 bankruptcy protection.

The debtor-in-possession financing, approved on Monday by U.S. Bankruptcy Court, allows the retailer to pay vendors and other business partners for goods and services received.

The company filed for Chapter 11 protection last month.

U.S. Bankruptcy Judge Kevin Huennekens also approved a motion that would let Circuit City void employment and severance contracts with 40 former workers, including Philip Schoonover, who stepped down as chairman and CEO in September.

Schoonover was entitled to at least $1.8 million in pay and other benefits as part of his employment agreement, according to a regulatory filing.