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According to published reports, Circuit City Stores Inc. has filed for bankruptcy as of Monday November 10th 2008. It seems the retailer and 17 affiliates were forced to file for Chapter 11 protection from creditors who have tightened their credit terms directly as a result of the ongoing credit crisis. The Circuit City Chapter 11 filing was done in Richmond, Virginia where the company is headquartered.

Circuit City’s chief Financial Officer, Bruce Besanko, explained in a statement:

“In large part, a Chapter 11 filing is due to three factors, all of which contributed to a liquidity crisis that prevented the company from completing its turnaround goals outside of formal proceedings: erosion of vendor confidence, decreased liquidity and a global economic crisis.”

Hugh Son and Craig Torres, writing for bloomberg.com, report that AIG has been granted an expanded rescue package.

Back in September the government bailed out AIG rescuing the insurance company from the brink of bankruptcy; but the bailout did not turn things around for AIG. The company continued to suffer losses and have had to turn to the government to ask for additional help.

The expanded rescue package which the government has agreed to is said to be valued at more than $150 billion. For more read AIG Gets Expanded Bailout, Posts $24.5 Billion Loss