Circuit City stores to shut down – liquidation sale starts Saturday

January 16, 2009

NEW YORK (ChattahBox) — Bankrupt electronics retailer Circuit City Inc. said Friday it would liquidate and close its remaining 567 stores, after a U.S. Bankruptcy court approved the electronics retailer’s motion to pack it in. The No. 2 electronics, which has 34,000 employees, will receive 60 days’ notice of the termination.

Employees who are laid off earlier will get pay and benefits for the 60-day period beginning Friday, the retailer said.

The company said the sale would begin Saturday and run until March 31, pending court approval. The company said it will redeem its gift cards through the liquidation sale, but the cards will have no value once the stores are closed.

The retailer’s Web site and call center will cease to operate after Jan. 18.

Circuit City also operates about 765 retail stores and dealer outlets in Canada. The company said its Canadian operations, which employ 3,000 workers, will continue to operate.

Needless to say the company management made some huge mistakes, but this also shows how bad things are for the retail industry.

There is said to be a slim chance that one or more firms that have expressed an interest in buying Circuit City could still buy it out of bankruptcy over the next few days, and restructure it primarily as an online business with very few physical stores.


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