Circuit City Sues Mitsubishi, LG For $15 Million in Chargebacks
With a final liquidation in the wings, defunct retailer Circuit City has sued several CE suppliers seeking more than $15 million it claims to be owed for chargebacks and other debts.
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Circuit City sued Mitsubishi and LG in U.S. Bankruptcy Court, Richmond, Va., seeking payment of $5.7 million and $10.4 million for chargebacks, returns and deposits and warranty claims, according to court documents. Circuit City is owed the money for pre- and post-bankruptcy sales of LG and Mitsubishi products, the former retailer said. Circuit City also sued several other companies for smaller amounts including Onkyo, which owes $238,910, Circuit City said.
Mitsubishi and LG also have filed $10 million and $36 million claims against Circuit City for goods and services it supplied the retailer, according to court records. Mitsubishi renewed ties with Circuit City in 2006, ending a 13-year absence (CED July 19/06 p1). Panasonic and Circuit City resolved a similar dispute in Dec. 2008 (CED Dec 2/08 p2). Circuit City agreed to pay $7.9 million it owed as part of a vendor agreement. Circuit City filed for bankruptcy in November 2008 and shifted to liquidation in early 2009.
A hearing on the liquidation plan will finalize how Circuit City’s creditors will be paid. It was postponed last week to May 11, marking the sixth time it has been delayed since November.