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Circuit City to close 155 stores across US

All KC metro locations will shut their doors

November 4, 2008

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The exterior of the Circuit City store in East Palo Alto, Calif., is shown. Circuit City Stores Inc., the Richmond, Va.-based company said Monday that it will shutter 155 of its more than 700 stores in 12 markets by Dec. 31, laying off thousands of employees.

The exterior of the Circuit City store in East Palo Alto, Calif., is shown. Circuit City Stores Inc., the Richmond, Va.-based company said Monday that it will shutter 155 of its more than 700 stores in 12 markets by Dec. 31, laying off thousands of employees.

— As the lights go out at about 20 percent of Circuit City's stores, including every one in the Kansas City area, the company is hoping that by closing hundreds of stores and cutting thousands of jobs it can survive consumers who are reluctant to spend and vendors less eager to give it credit.

But analysts say the moves announced Monday renewed the specter of bankruptcy hanging over the nation's No. 2 consumer electronics retailer heading into a holiday shopping season that could determine its future.

"Clearly, (Circuit City) is frantically working to keep itself alive," JP Morgan analyst Christopher Horvers wrote in a note to investors.

Circuit City Stores Inc. is closing 155 of its more than 700 U.S. stores by Dec. 31. The stores are spread throughout 28 states, including multiple locations in areas like Phoenix and Atlanta. It is laying off about 17 percent of its domestic work force, which could affect up to 7,300 people.

James A. Marcum, vice chairman and acting president and chief executive, called the decision to close stores "difficult, but necessary."

"The weakened environment has resulted in a slowdown of consumer spending, further impacting our business as well as the business of our vendors," Marcum said in a statement. "The combination of these trends has strained severely our working capital and liquidity."

Based on nearly 43,000 employees as of Feb. 29, the layoffs could affect up to about 7,300 workers. The company said the number would likely be lower in part because employees in some markets may become employed at other stores. It would not give further details.

Richmond, Va.-based Circuit City also said it will further cut back on new store openings and plans to work with landlords to renegotiate leases, lower rent or terminate agreements while it deals with tightening credit from its vendors.

Comments

gccs14r 6 years, 1 month ago

Circuit City is an overpriced retailer of consumer electronics.

tolawdjk 6 years, 1 month ago

Do you know something about the election I don't Tom? Who will be President come February? I don't know, but apparently, you do.How do you know it will get "exponentially" worse? Is that assertation independent of the elected official?Tom, the recession in beginning of GW's first term can hardly be blamed on him, given he had no ability to effect those actions prior to his election. If you want to go ahead and spew the MSM's talking points for them in some kind of defeatist attitude, fine, go ahead, but that just confirms you are a tool.McCain and Obama have little to blame for the position we find ourselves in economically right now, but they are a clear indication of the current President's policies and decisions. Yes, Congress starts the ball rolling, but the "Buck Does Stop Here."G.W. could have stopped that Buck, changed the source of that Buck, said we don't have enough Bucks to even contemplating stopping them, but decided it would be easier to just go get someone else's Bucks to puch on through to -everything-.Whomever is elected today, barring some miraculous discovery of 100 carat diamonds lying undiscovered under Fort Knox is going to be a 1 termer.Tom, you have become your enemy, and I find it helarious.

webmocker 6 years, 1 month ago

"You're going to be hearing alot of stories like this the first couple years of The Chosen Ones trainwreck of a presidency; which is why we are screwed and why America will realize he is a mistake and he will not serve a second term.A partial list (besides Circuit City):..."The present misfortunes of businesses are the fault of a person who may be in power starting in 77 days? Really? Wow.

AjiDeGallina 6 years, 1 month ago

Speaking of nuts,Did you hear the one about the neocon who walked into the mental hospital wearning nothing but saran wrap?The doctor took one look at him and said..I can clearly see yer nuts.

tolawdjk 6 years, 1 month ago

CompUSA is already out of business and has been out of business for months, completely prior to even the primaries.Tom, you amaze me in ways unfathomed in your ability to blame a man who isn't even President.

kristyj 6 years, 1 month ago

I went to Circuit City in KC a few months ago. The store was messy, confusing & poorly organized, the staff barely knew where products were located & I had to SEARCH to find the register to check out (fortunately only spending about $9). They did not make it easy for me to give them my money.

Bossa_Nova 6 years, 1 month ago

circuit city refused to let me return a CD that was given to me as a gift because i didnt have the reciept although the cd was still in its wrapper in perfect condition with a circuit city price tag on it, etc, etc. they said its because their return policy is 3 months max after purchase and since it couldnt be determined when it was purchased, they wouldnt allow it to be returned. i was a very loyal customer to circuit city.ok, fine, i'll go to best buy from now on. since that unfortunate situation, i've bought over $60,000 in electronics, entertainment items, etc from best buy and will continue to do so . obviously i'm not the only one who went elsewhere from circuit city's poor customer service attitude.

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