Here come the closeout sales: Circuit City (CC) says it’s shuttering 155 of its 721 U.S. stores, or about 20%, to save cash. The declining electronics retailer will also consider “all available options and alternatives to restructure its business.”
(They won’t get the $6 to $8 cash per share that Blockbuster foolishly waved earlier this year, that’s for sure — Circuit City shares are trading at 30 cents per share in pre-market trading.)
Why close stores? A mixture of crappy results and the souring economy. In a statement, Circuit City says that after it reported Q2 results in September — a $239 million loss on $2.4 billion of sales — some of its vendors took “restrictive action” on payment and credit terms, which are “becoming unmanageable” for the company.
The affected stores won’t open tomorrow, and will open for store closeout sales on Wednesday, which Circuit City expects to wrap up by the end of the year.
The closures include several stores in Phoenix and Atlanta, as well as its Brooklyn and Upper East Side stores in New York. Complete list:
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