Circuit City Announces Store Closings, Layoffs
Circuit City announced today it is planning to shutter 155 of its retail stores and layoff 17 percent of its workers. The company's financial situation has worsened over the past few weeks as the effects of the economic slowdown began to take its toll and suppliers began tightening credit. As the holiday season is fast approaching, the reduction in available credit is critical to Circuit City's ability to keep stock on hand. The company plans to hold liquidation sales at the stores targeted for closing. Of the 12 new stores it had planned to open this year, only two will be opened and the company said it is shelving plans on all store openings for next year. Circuit City is also facing the threat of having its shares delisted from the New York Stock Exchange as its stock price had fallen below $1 for 30 straight trading days.