Financial woes continue to plague Circuit City, the nation’s second largest electronics retailer. It filed for bankruptcy protection on Monday.

Last week the Richmond, Virginia based company announced it was closing nearly 20-percent of its stores and laying off thousands of employees. According to the filing, Circuit City will continue to do business and pay its workers while it restructures debt and its business operations.

Circuit City says previously sold warranty and service plans, as well as its co-branded credit cards, will not be impacted by this move.

Not surprisingly, you can blame the economy and competition for this casualty. Circuit City says sales are down at older locations in lower-income neighborhoods. Amazon.com and other web retailers are also taking a bigger chunk of business.

As for those closed stores, rival Best Buy has hinted it might take over stores that “distressed rivals” close.

Information from CNN, Reuters and the Associated Press was used in this report.