updated 09:50 am EST, Mon November 3, 2008
Circuit City Closes 155
Circuit City today confirmed a drastic step to save its retail business and says it will shutter 155 of its stores across the US as well as renegotiate its store licenses and curb its launches for new stores. The move leaves 566 stores and is said to target those locations that were unprofitable, particularly after marketing was involved. The shutdown takes effect quickly and will see closeout sales as early as November 5th.
The retailer blames both the poor economic conditions and a resulting shortage of credit for the company that prevents it from stocking as many products as it would like. Circuit City also believes the federal government owes the firm an $80 million income tax credit that hasn't yet been supplied.
The closures have been announced at the same time as CompUSA has also struggled in the marketplace and as Best Buy has continued to enjoy the largest amount of success among large-scale electronics retailers. Among other advantages, Best Buy has landed a currently exclusive third-party deal to carry iPhones and frequently carries store-specific variants of computers.