Circuit City announced today that it is seeking bankruptcy court approval to liquidate its U.S. assets including the shutdown of its remaining U.S. stores. The company has already received approval from four companies to start the liquidation process.
"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 Stores, Inc.
If approved, the company would hold a liquidation sale Saturday, January 17th, through March 31st at all U.S. retail locations.
Circuit City is the second largest U.S. consumer electronics retailer behind Best Buy. While Circuit City does not sell Apple computers or iPhones, they do sell iPods and a variety of 3rd party accessories in addition to other electronics gear.
Update: Circuit City has posted a FAQ to their website. Up until today Circuit City has employed 34,000 people in the U.S.
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