Circuit City closes doors-30,000 jobless

Circuit City Stores announces the closing of all 567 U.S. stores

West Palm Beach, FL (JusticeNewsFlash.com)–Circuit City is another large nationwide retailer to bite the dust. Circuit City Stores, Inc., the nation’s second largest consumer electronics retailer has announced the closing of all 567 stores in the United States and leaves more than 30,000 jobless. The Associated Press (AP) reported today this is one of many retail giants American buyers have seen go under. Linens ‘N Things, Mervyns and KB Toys are some of the other national retailers to go under.

Unfortunately, not only are Circuit City employees without a job and a paycheck, so are the shareholders. The company filed for bankruptcy protection in December 2008 hoping customer loyalty during holiday spending and a buyer would help the company emerge. This was not the case. Company executives are claiming the plunging financial market, virtually nonexistent consumer spending, and an overall weakening national and international economy has forced the retail giants doors to close.

Court documents state Circuit City appointed several liquidators; Great American Group LLC, Hudson Capital Partners LLC, SB Capital Group LLC and Tiger Capital Group LLC as liquidators. The judge approved the bankruptcy liquidation and the liquidators have agreed to 70.5% return on merchandise. The company remains unclear about the 765 retail stores and dealer outlets in Canada. Lawyers for Circuit City informed a judge there are still buyers bidding on the Canadian business.

Several stores may begin their close-out sales as early as Saturday.

JusticeNewsFlash.com top news source for South Florida business litigation lawyers

About Author