RICHMOND, Va. — In the 59 years since Circuit City began as a humble television store in this sleepy Southern capital, none of its actions have been as arduous as those of late.

In recent months, the nation's second-largest consumer electronics retailer has defused a proxy battle, opened its books to potential buyers, changed management and closed stores.

Yet Circuit City executives found themselves in a federal bankruptcy court yesterday blocks from its first location, begging for the financial protection it needs to survive.

Facing pressure from its vendors and from consumers who aren't spending, Circuit City filed for bankruptcy protection, heading into the busy holiday season with hopes of emerging as a stronger company able to compete in the ever-expanding marketplace.

Under Chapter 11 protection, the company can keep operating while it develops a reorganization plan. Its Canadian operations also filed for similar protection.

Circuit City also said it cut 700 more jobs at its Richmond, Va., headquarters, after announcing a week ago that it would close 20 percent of its stores and lay off thousands of workers.

"It's very sad," said Alan L. Wurtzel, the son of company founder Samuel S. Wurtzel, and the chief executive from 1972 to 1986. "I feel particularly bad for all the employees. The shareholders had plenty of notice that this was a sinking ship.

"Hopefully they'll be able to regroup and get this company started again."

In court documents, Chief Financial Officer Bruce H. Besanko cited three factors: erosion of vendor confidence, decreased liquidity and the global economic crisis.

"Without immediate relief, the company is concerned that it will not receive goods for Black Friday and the upcoming holiday season, which could cause irreparable harm to the company and its stakeholders," Besanko said in the filing.

Its shares fell 14 cents, or about 56 percent, to 11 cents yesterday before being halted.

Circuit City, which has had only one profitable quarter in the past year, has faced significant declines in traffic and heightened competition from rival Best Buy Co. and others.

In recent comments Wurtzel, who served as board chairman from 1986 to 1994 and vice chairman until 2001, said Circuit City didn't take the threat of Best Buy seriously enough, focusing on making a profit in the short term rather than building value for customers in the long term.

The company laid off about 3,400 retail employees last year and replaced them with lower-paid workers, a move analysts said could backfire, hurting morale and driving away customers.

While the retail industry overall is facing what's expected to be the weakest holiday season in decades, Circuit City's struggles have intensified as nervous consumers spend less and credit has become tighter.

At a hearing in Richmond, U.S. Bankruptcy Judge Kevin Huennekens granted Circuit City interim approval to secure $1.1 billion in debtor-in-possession loans while it is in bankruptcy protection. Those funds, needed to stock merchandise and pay employees, replace a $1.3 billion asset-backed loan the company had been using.

Circuit City also was granted interim approval to abandon 150 leases at locations where it no longer operates stores, which it said costs $40 million annually.

The company, which said it had $3.4 billion in assets and $2.32 billion in liabilities as of Aug. 31, is hoping to exit court protection by early summer 2009, putting it in a position to find a buyer for the chain or operate as a standalone business.

Analysts said much depends on Circuit City's relationship with its vendors and how it handles its real estate issues.

Circuit City is a well-known brand and could re-emerge from bankruptcy, Stifel Nicolaus & Co. analyst David Schick said in a note to investors. "We believe the marketplace has a slot for a higher-end chain with a commissioned sales force," he said.

But Stephen Lubben, a professor at Seton Hall Law School, said Circuit City's survival depends on whether its creditors work with the company "or whether they think they're a lost cause and cut them off permanently."

The company's biggest creditors are its vendors, including Hewlett-Packard, Samsung, Sony, Zenith, Toshiba and others.