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Circuit City Closes its Door

January 18, 2009

Only the chain’s Canadian locations will remain open

By Matthew B. Zeidman

RICHMOND, Va. (RushPRnews/Hollywood Today) 1/18/09 – Yet another retail giant was felled by the cratering U.S. economy Friday, as Circuit City announced it would close all 567 of its remaining domestic locations and allow a third party to hold liquidation sales in its stores as early as the next day.

“We had hoped to be able to emerge from Chapter 11 bankruptcy protection as a stronger, more competitive company and we made significant progress during the reorganization to improve our business,” the electronics giant said in a statement posted to its Web site. “Unfortunately, the economic climate is so poor that we have no choice other than liquidation.”

According to the statement, a skeleton crew would be retained at the corporate headquarters in Richmond, Va., to aid in the liquidation process, but most corporate employees would be informed of their termination Monday.



Including corporate and store employees, 30,000 stand to lose their jobs, according to a press release by CEO James Marcum. None of the store closings or corporate layoffs will affect Circuit-City-branded locations in Canada, which is operated by a Canadian subsidiary.

The company had declared bankruptcy on Nov. 10, 2008 and closed 155 underperforming shops just days before in an unsuccessful effort to keep afloat amidst the worsening economic crisis.

CompUSA, another major electronics and computer retailer, liquidated the majority of its retail units in early 2007.

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