Circuit City Closes
January 16, 2009 at 10:28 AM (PT)
In another troubling sign of the recession's impact on the entertainment industry, CIRCUIT CITY has announced that it will be closing its doors. When it became apparent that it couldn't get refinancing or find a buyer, the nation's second-biggest consumer electronics retailer agreed to sell the merchandise in its 567 U.S. stores to liquidators.
The move will put over 30,000 employees out of work
CIRCUIT CITY's downfall began last JULY, when BEST BUY withdrew a #1 billion offer to buy out the chain. The company said it had $3.4 billion in assets and $2.32 billion in liabilities as of Aug. 31st when it filed for Chapter 11 bankruptcy protection in NOVEMBER, predicting it would emerge from court protection in the first half of this year. The closure of 155 stores in NOVEMBER and DECEMBER did little to stop the proverbial bleeding. U.S. Bankruptcy Judge KEVIN HUENNEKENS gave the company permission to liquidate if it couldn't find a buyer.