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Circuit City: Going, Going Gone


By Michele Masterson, ChannelWeb

9:23 AM EST Fri. Mar. 06, 2009
With its store shelves nearly empty, Circuit City will take its last breath on Sunday and shut its doors for good.

The once-mighty consumer electronics retailer—No. 2 behind Best Buy--first filed for Chapter 11 bankruptcy protection in November 2008 and closed 155 outlets.

The 60-year-old company was shopped around to prospective buyers but had no takers. It then shuttered its remaining its remaining 567 outlets and began liquidation. At the same time, the retailer also shut down its Web site and call center. When it began liquidation, Circuit City had approximately 34,000 U.S. employees.

"We had hoped to be able to emerge from Chapter 11 bankruptcy protection as a stronger, more competitive company, and we made significant progress during the reorganization to improve our business," the company said in a statement. "Unfortunately, the economic climate is so poor that we have no choice other than liquidation."

At that time, Circuit City said it planned to continue operations in Canada and retain its 3,000 employees there. However, on March 2, the company struck a deal with Bell Canada, which agreed to acquire the Canadian operations of Circuit City. InterTAN Canada Ltd., a subsidiary of Circuit City, controls that and operates more than 750 The Source stores across the country. The deal is subject to regulatory approval in the U.S. and Canada.

 
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