updated 12:10 pm EST, Fri January 16, 2009
Circuit City Liquidates
Circuit City today revealed that it has decided to liquidate all its assets and effectively shut down the company. The retailer says the move comes after it was unable to strike a deal with its creditors and other moneylenders to fund the company's business following its move for Chapter 11 bankruptcy in November, which gave it an opportunity to reorganize its business. It also warns that there is unlikely to be enough money left from selling its stores and other resources to pay equity holders.
When Circuit City will sell off its stores isn't mentioned, nor is the outcome of the company's firedog installation service business and its Canadian retail chain The Source.
The company has long been on a decline as it struggled to compete with more successful chains like Best Buy and had briefly tried to use 155 store closures to stave off bankruptcy. Many of its troubles were compounded by poor credit that prevented it from ordering some products and stocking its shelves as well as challengers.