Circuit City to Liquidate Assets, Close 567 Stores
Circuit City, one of the country's largest electronics retailers, has been unable to find a buyer and will be liquidating all assets. The company's 30,000+ employees will also be losing their jobs.
"We are extremely disappointed by this outcome," said Circuit City CEO James. "The company had been in continuous negotiations regarding a going concern transaction. Regrettably for the more than 30,000 employees of Circuit City and our loyal customers, we were unable to reach an agreement with our creditors and lenders to structure a going-concern transaction in the limited timeframe available, and so this is the only possible path for our company."
Bloomberg reports that Circuit City has hired four liquidators to sell all of the company's remaining merchandise in 567 stores before it goes out of business. See also Retailer Daily, Bizjournals.com and CNN/Money for more details on Circuit City's liquidation plans.
Update 1-17-09: Circuit City begins liquidation sales - will accept gift cards.
