RICHMOND, Va. — A federal bankruptcy judge has given Circuit City final approval for $1.1 billion in financing to operate while it is in Chapter 11 bankruptcy protection.

An attorney for the nation's second-biggest electronics retailer also said at a hearing in Richmond that Circuit City's sales have been down between 40 percent and 50 percent since the company filed for bankruptcy protection last month.

Richmond, Va.-based Circuit City had faced pressure from vendors and consumers who aren't spending.

The debtor-in-possession loans approved by U.S. Bankruptcy Judge Kevin Huennekens will be used to stock merchandise and pay employees. They replace a $1.3 billion asset-backed loan the company had been using.

The judge also gave the company approval to void several service agreements and severance contracts with former employees.