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Mar-08-2009 21:30printcomments

Circuit City Lets Go 34,000 Employees as Doors Close for Good

"Circuit City would like to thank the millions of customers who have shopped with us during the past 60 years." - Company Website

Circuit City
Courtesy: ci.east-palo-alto.ca.us

(RICHMOND, Va.) - Circuit City Stores are no more. The chain closed all of its stores today that were known for offering good deals on electronic equipment and computers. The chain announced the pending closure on January 16, 2009.

Circuit City Stores, Inc. announced that same day, January 16, 2009, that it will seek Bankruptcy Court approval to begin the process to liquidate the assets of the company.

The AP reports that all 567 remaining U.S. stores were closed down Sunday, leaving 18 million square feet of vacant space in a faltering real estate market.

Job loss at Circuit City affects more than 34,000 employees.

Shareholders are out of luck as this latest blow to the U.S. economy drives home the spiraling price tag of the last Presidential administration.

“We are extremely disappointed by this outcome. 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 to structure a going-concern transaction in the limited timeframe available, and so this is the only possible path for our company,” said James A. Marcum, vice chairman and acting president and chief executive officer for Circuit City.

Circuit City will provide more details in the near term about the plans for the liquidation of the stores and other assets, the status of the company’s Web site and firedogSM services operations, the status of its Canadian operations and plans for the company’s bankruptcy proceedings.

The company does not anticipate any value will remain from the bankruptcy estate for the holders of the company’s common equity, although this will be determined in the continuing bankruptcy proceedings.

The company filed for Chapter 11 bankruptcy protection in November 2008. The case number for Circuit City’s Chapter 11 filing is 08-35653.

Additional information can be found by visiting the company’s investor information home page at investor.circuitcity.com and clicking on “Breaking News” and at the Claims Agent’s Web site at kccllc.net/circuitcity.

About Circuit City Stores, Inc.

Circuit City Stores, Inc. (OTC:CCTYQ) is a specialty retailer of consumer electronics and related services. At December 31, 2008, the domestic segment operated 567 stores in 153 U.S. media markets. At December 31, 2008, the international segment operated through approximately 765 retail stores and dealer outlets in Canada. Circuit City operates Web sites at www.circuitcity.com, www.thesource.ca and www.firedog.com.

Forward-Looking Statements

Statements made in this release may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are subject to risks and uncertainties. These forward-looking statements include, without limitation, statements regarding the company’s expectations concerning the bankruptcy process. Actual results may differ materially from those included in the forward-looking statements due to a number of factors, including, without limitation, developments in the bankruptcy proceedings, the results of the liquidation sales and other matters.




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Flienezib April 24, 2009 6:35 am (Pacific time)

hmm. interesting..


Mike March 9, 2009 1:41 pm (Pacific time)

Businesses closing is nothing new. Go look up the different car manufacturers and so many others that close down. I remeber what seems like yesterday buying stuff at Montgomery Wards and Futureshop electronics, they and small businesses fade away and new businesses replace them if their is a market. We do not want the government to control our market no matter what. We will survive and recover, this is how life goes. These economic cycles happen no matter what party is in power, just review the histroy. But anytime the government steps in, we have a delayed recovery period. The falling stock market is because investors do not trust the governments policies.


usblues March 9, 2009 10:53 am (Pacific time)

It's too bad that people lost their jobs, but its not a surprise to see this happen. Whenever i'd go into Circuit City, Best Buy, etc.. the prices are always way higher than if you buy the same thing online. Often i'll go into the store, check out a product, and then buy it somwhere else.


Go Cards01 March 8, 2009 10:08 pm (Pacific time)

The last Presidential administration is the only thing to hold to blame for all of this.  It is not the fault of the Democrats.  People need to be cool and not use foul mouthed profanity when making their point.  You never know how it is going to turn out when you are an assh&%e.

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