RICHMOND, Va. – Circuit City Stores Inc. (NYSE: CC), the second-largest consumer electronics retailer in the United States, is going out of business.
The company today announced that it will close all 567 of its remaining stores – including its shops in Cranston, Seekonk, North Attleboro, Taunton and Dartmouth – and sell off its remaining merchandise.
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Going-out-of-businesses sales will begin tomorrow and end by March 31. A total of 30,000 employees will lose their jobs nationwide, the company said.
The company’s Web site, CircuitCity.com, which was still live early in the afternoon, was shut down a few hours after the announcement.
Circuit City gift cards will be accepted during the liquidation sale, but will lose their value when the stores close for good, the company said.
In a court-sanctioned auction, liquidators Great American Group WF LLC, Hudson Capital Partners LLC, SB Capital Group LLC, and Tiger Capital Group LLC won the right to sell off the company’s remaining merchandise, which is valued at $1.2 billion to $1.3 billion, according to Bloomberg News. Shareholders likely will be wiped out, the company said.
“We are extremely disappointed by this outcome,” James A. Marcum, Circuit City’s acting CEO, said in a statement. “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.”
In November, Circuit City announced plans to close 155 of its 712 U.S. stores and lay off 17 percent of its staff nationwide. None of its Rhode Island and Massachusetts locations were affected in that round of closings. (READ MORE)
In its Chapter 11 petition, Circuit City listed assets of $3.4 billion and debt of $2.32 billion.
Additional information about Circuit City Stores Inc. (NYSE: CC) and its plans is available at newsroom.circuitcity.com.
