Today CNN reported that Circuit City is filing for Bankruptcy. Their reasons are increased competition from Wal-Mart and Best Buy, along with the credit crunch and financial market woes. As a former IT Auditor at Circuit City, let me say B.S.!

Circuit City is an extremely poor run company that wastes it budgets and refuses to listen to those who point out the obvious. In IT alone, you can’t expect to cut costs by laying off your most senior and knowledgeable employees, while you’re wasting money on unnecessary 3rd party maintenance agreements, over blown consulting contracts and refusing to correct security issues that put your customer’s data at risk.

What killed Circuit City is the constant internal policy to report, not fix. To give the appearance of complying to Sarbanes-Oxley and CCI regulations, instead of actually correcting the issues found in those audits. And their external auditors are no help. They’re more interested in keeping their business relationship with the company than they are on ensuring the essence of these regulations are being met.

Their announcement today is a smoke screen for their internal problems. After laying off 3000+ employees who gave their professional lives to the company, then laying off their top managers in the stores, thinking it’s their employees who were the problem and not their own executive decisions; they deserve to go out of business. Strike one for the working man!