January 16th, 2009
Closing time: Circuit City will liquidate
It’s closing time at Circuit City. The company said Friday that it plans to liquidate the assets of its company.
Circuit City, which filed for bankruptcy late last year, said in a statement that its attempt to sell itself fell through. The company will now close its doors eliminating 30,000 jobs.
Acting CEO James Marcum said:
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.
Circuit City said it will provide more details about the liquidation plan and properties such as its Web site and services operation. As is the norm in bankruptcy proceedings shareholders won’t get anything.
With Circuit City out of the picture Best Buy has the brick-and-mortar electronics retailing field largely to itself.
Larry Dignan is Editor in Chief of ZDNet and Editorial Director of ZDNet sister site TechRepublic. See his full profile and disclosure of his industry affiliations.
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