Circuit City Stores Inc. plans to liquidate its remaining 567 U.S. stores and lay off 30,000 employees after failing to find a buyer or a refinancing deal.
The Richmond, Va., retailer (Other OTC: CCTYQ.PK) has locations in the Dayton area.
The nation’s second-biggest electronics retailer does not expect any money to be left from bankruptcy to pay its common stockholders anything.
The retailer of consumer electronics said last week that it was negotiating a sale with two prospective buyers, and was "optimistic" that a deal would be completed.
"We are extremely disappointed by this outcome," said James Marcum, vice chairman and acting president and CEO for Circuit City Stores. "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 filed filed for bankruptcy Nov. 10, after posting a quarterly loss of $240 million. The Richmond, Va.-based company, on Jan. 5, filed a motion with the U.S. Bankruptcy Court that would allow it to sell its assets in pieces, or as a whole.
In a press release, Circuit City said it will provide more details in the near term about plans for the liquidation of the stores and other assets, the status of the company's Web site and firedog services operations, the status of its Canadian operations and plans for the company's bankruptcy proceedings.
Source : BizJournals
[tags : recession bankrupt collapse retrenchment financial news collapse stagnation economic slowdown financial collapse world recession global recession layoff job cut]
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