In light of the deteriorating economy Circuit City Stores has decided to take restructuring actions immediately, including closing 155 domestic stores in 12 markets, reducing future store openings and aggressively renegotiating certain leases. The company also is considering all available options and alternatives to restructure its business.
Said James Marcum, vice chairman and acting CEO of Circuit City: "Since late September, unprecedented events have occurred in the financial and consumer markets causing macroeconomic trends to worsen sharply. The weakened environment has resulted in a slowdown of consumer spending, further impacting our business as well as the business of our vendors. The combination of these trends has strained severely our working capital and liquidity, and so we are making a number of difficult, but necessary, decisions to address the company’s financial situation as quickly as possible."
Circuit City will continue to serve guests through 566 stores in 153 U.S. media markets.