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Circuit City pulls plug on all 567 US stores
Liquidation sales of USD1.2 billion in inventory will start at 567 Circuit City stores nationwide after the bankrupt consumer electronics retailer was unable to find a buyer or restructure its debt. The company’s 34,000 employees are all expected to lose their jobs. “We are extremely disappointed by this outcome,” James Marcum, Acting President and CEO, said in a statement. “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.” The liquidation sales, expected to last eight to nine weeks, will start with 10-30% off merchandise, said James Schaye, President and CEO of Hudson Capital Partners. Circuit City will honour gift cards during the liquidation sale, but all purchases will be final. Products bought before 16 January, however, can be returned for a 14-day period for exchanges or refunds.
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