Last week we brought word that electronics retail giant Circuit City was closing a large number of stores. Well now it appears that the move to shutter locales was only the first step, as the company has now officially filed for Chapter 11 bankruptcy protection.

Bloomberg is reporting that the retailer is in rough shape, owing Hewlett-Packard $119 million and Samsung $116 million. In addition, the chain also owes Sony $60 million, and that’s just the tip of the iceberg. In all, the company is $650 million in the red, and has secured $1.1 billion in bankruptcy funding from Bank of America in hopes of righting the ship.

The news isn’t all bleak however, as the company has announced that they intend to stay in business while reorganizing, hoping to emerge with a stronger position in the market and the ability to turn a profit once the financial crisis is over. Bloomberg holds that Circuit City is facing stiff competition from Best Buy and Wal-Mart, and needs to figure out some way to compete with these bigger, leaner giants.

We wish all the fine employees and managers of Circuit City the best in all this. Sadly, jobs will be lost and stores will be closed, but hopefully the chain will survive. Good luck Circuit City, you can crash on our couch if you need to during this rough time.