UPDATE 4-Circuit City files for bankruptcy protection

The company's stock has swooned 99 percent since January 2007 and now trades at less than 50 cents. The shares were suspended by the NYSE on Monday.

SUPPLIER SQUEEZE

In recent weeks, suppliers pinched by the global credit crunch tightened terms, sometimes requiring upfront payment from Circuit City before shipping goods.

Industry leader Best Buy Co (BBY.N), discounter Wal-Mart Stores (WMT.N) and regional retailers such as hhgregg (HGG.N) are expected to benefit from electronics store closures in the longer term, analysts have said.

But the flood of discounted merchandise from liquidating Circuit City stores could hurt Best Buy this holiday shopping season, which is expected to be one of the bleakest in recent years as consumers grapple with rising unemployment and the soft economy.

"Longer term, you've got Best Buy, who's dominant in the sector, taking share. But in the short run it could feel the pain of the liquidation activity," Binder said.

According to the filing, Circuit City had $3.4 billion of assets and $2.32 billion of debt as of Aug. 31, and more than 100,000 creditors.

The company has arranged a commitment for debtor-in-possession financing of $1.1 billion, which will allow it to continue to operate.

Among the company's largest unsecured creditors are Hewlett-Packard Co (HPQ.N), which is owed $118.8 million; Samsung Electronics Co (005930.KS), owed $115.9 million; and Sony Corp (6758.T), the filing shows. The largest shareholders include HBK Master Fund LP and First Pacific Advisors LLC, according to the filing.

Best Buy shares closed down 38 cents, or 1.5 percent, to $25.21 on the New York Stock Exchange on Monday, and hhgregg fell 18 cents, or 3.5 percent, to $4.93. (Additional reporting by Jonathan Stempel, Chelsea Emery and Martinne Geller in New York; Editing by Steve Orlofsky, Brian Moss and Matthew Lewis)