Circuit City is finished after filing for bankruptcy just before the holiday shopping season. This means there’s one less place to buy notebooks and 30,000 people will soon be out of work.
While Circuit City is one of my least favorite computer retailers it’s always good to have competition. In a lot of towns Best Buy will be the only choice.
Here’s the full press release from Circuit City.
RICHMOND, Va., Jan 16, 2009 /PRNewswire-FirstCall via COMTEX News Network/ — Circuit City Stores, Inc. announced today that it will seek Bankruptcy Court approval to begin the process to liquidate the assets of the company.
“We are extremely disappointed by this outcome. 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,” said James A. Marcum, vice chairman and acting president and chief executive officer for Circuit City Stores, Inc.
Circuit City will provide more details in the near term about the plans for the liquidation of the stores and other assets, the status of the company’s Web site and firedogSM services operations, the status of its Canadian operations and plans for the company’s bankruptcy proceedings.
The company does not anticipate any value will remain from the bankruptcy estate for the holders of the company’s common equity, although this will be determined in the continuing bankruptcy proceedings.
The company filed for Chapter 11 bankruptcy protection in November 2008. The case number for Circuit City’s Chapter 11 filing is 08-35653. Additional information can be found by visiting the company’s investor information home page at https://investor.circuitcity.com and clicking on “Breaking News” and at the Claims Agent’s Web site at www.kccllc.net/circuitcity.