Circuit City To Close Remaining Stores

Just two months after they announced the closure of selected locations around the country, today Circuit City says that they are closing down the entire chain.

Circuit City Stores Inc., the bankrupt consumer-electronics retailer, named four liquidators to sell the remaining merchandise in 567 U.S. stores before it goes out of business. Liquidators Great American Group WF LLC; Hudson Capital Partners LLC; SB Capital Group LLC; and Tiger Capital Group LLC won the right to handle the sales in a court-sanctioned auction. Under an agreement announced today, Circuit City creditors are guaranteed to get the first 70.5 percent of the value of the $1.2 billion to $1.3 billion in inventory. Stockholders will probably get nothing, Circuit City said in a statement. Sales declined at Circuit City, once the biggest U.S. electronics retailer, as it lost market share to Best Buy Co., Wal-Mart Stores Inc. and online retailers. On Nov. 10, it filed for bankruptcy in Richmond, Virginia, after suppliers cut off credit and demanded cash up front for shipments. At the time, Circuit City planned to exit court protection as a going concern.

Blockbuster made a bid to buy Circuit City last year, but withdrew from negotiations after they got a better look at the company's books.