Sony Trucks Literally Turn Around to Stop Circuit City Shipments

Illustration for article titled Sony Trucks Literally Turn Around to Stop Circuit City Shipments

Circuit City took a major blow today, according to a reliable inside source, when Sony's merchandise that was being delivered to nationwide Circuit City distribution centers was stopped in transit and ordered to return to Sony "among worries that Circuit City couldn't pay for the shipments." This development means that Circuit City is not getting any Sony products replenished until they are able to convince Sony that their credit line is reliable. And with as bad as things are looking for Circuit City at the moment, that day may never come.

DISCUSSION

Knowing the trade credit world form the inside a little bit, they don't simply turn the shipment around out of fear of non-payment. Circuit's clearly already defaulted on payment terms and the shipment's being held until they bring their payments current. Very serious.