January 30th is the Closed Doors date, expect some good deals going on.

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NY Times Article

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Yahoo News Article

Circuit City says will liquidate assets

ATLANTA (Reuters) – Bankrupt retailer Circuit City Stores said on Friday it will liquidate its assets after it failed to reach a deal with creditors and lenders regarding a potential sale of the company.

Circuit City, the second-largest U.S. specialty electronics retailer, was due to present the results of an auction for its assets at a hearing in U.S. Bankruptcy Court in Richmond, Virginia, on Friday.

It had conducted negotiations with potential bidders to sell the company, but had advised that liquidation was possible if no deal was reached.

"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 ... and so this is the only possible path for our company," Vice Chairman James Marcum said in a statement.

Shares of the chain fell 68 percent to 5 cents.

Circuit City filed for Chapter 11 protection in November, citing a deteriorating cash position and tighter terms from vendors. It has liquidated and closed 155 stores, and now has about 567 U.S. stores.

It has struggled behind Best Buy Inc and faced heightened competition from other store chains, such as discounter Wal-Mart Stores Inc. Best Buy shares rose 1.5 percent on Friday after the Circuit City announcement.

The specialty chain is the biggest retailer to fall so far as rising unemployment and tighter credit lead consumers to halt spending and spur retail failures.

Restructuring experts are expecting a wave of store closures and potential bankruptcies as the soft economy continues to pressure business.

Last week, the retailer received bankruptcy court approval to proceed with an auction to sell the company. At the time, Circuit City said it was in talks with two undisclosed parties that could either buy the company or provide additional financing.

Circuit City was founded in 1949 when Samuel Wurtzel opened Ward's, Richmond's first retail television store.

(Reporting by Karen Jacobs, editing by Dave Zimmerman)

DAMN! That's pretty big news. This is at least the fifth major retailer I've heard of going under in the last few months.

that suxs i liked CC there's one near me 2

Damn. I think KB Toys closes all of it's doors on the same day. Has anyone been in a KB's the last month? It's a barren wasteland of empty shelf space. It looks like a Fallout grocery store in there.

I know I'll be putting some money aside to shop at Circuit City later this month. I bet the deals will be epic.

I haven't been to Circuit City in a long time, maybe I'll take a trip there soon.

? I had no idea KB was still open, I thought they closed down years ago....

that's another 34,000 unemployed people...I think 34,000 maybe 35,000. Either way it's another big chunk of retail workers, managers, and higher up white collar workers flooding the market.


My wife is a manger at Barnes and Noble bookstore and she says they have an insane number of job applications (in the hundreds) on file from the past few months. Anything from retail workers from closed down stores, to engineers and professors that are now willing to work a cash register. Getting in on the ground floor anywhere is getting hella hard even for people with degrees.

Wow, what an amazing story. That's really incredible. It's hard to wonder what will happen.

I was out of work for 7 months until September...

I can understand how many applications are flooding companies right now.

There is a line of people daily at my work filling out applications.

Generally, recessions claim the companies that had bad business practices. Are lessons learned, though? No... because most CEOs expect to be out of the job by the time the next recession comes around.