Richmond, Va. A U.S. Bankruptcy judge on Friday allowed Circuit City Stores Inc. to continue paying nearly 600 employees laid off at its headquarters before it filed for bankruptcy protection.
Circuit City was in court on Friday for hearings related to its Chapter 11 bankruptcy case. The company filed for protection last month as it faced pressure from vendors and consumers who weren't spending. Its Canadian operations also filed for similar protection.
The committee representing the company's unsecured creditors had asked the judge to cease payroll payments and benefits to 588 employees laid off in early November.
The payments would