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- 155 locations make up 20% of the company's overall retail storesMarketWatch: Circuit City to shut 155... (November 3, 2008)
- 20% of the company's workers will lose their jobsCNET: Circuit City files for bankruptcy (November 10, 2008)
- $350 million will be made available by the moveMarketWatch: Circuit City to shut 155... (November 3, 2008)
- The company will exit 12 marketsCNN Money: Circuit City To Close 27% Of US... (November 3, 2008)
- The chain includes 712 stores in the U.S.CNN Money: Circuit City To Close 27% Of US... (November 3, 2008)
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In an attempt to return to profitability and pay off vendors and creditors, electronics retailer Circuit City will close 155 of its United States stores to offset deteriorating liquidity. The company's CEO said that the economic crisis has led to a spending slowdown and lower than usual sales rates that have contributed to Circuit City's liquidity problems.MarketWatch: Circuit City to shut 155... (November 3, 2008) Business Review: Circuit City closing 155 stores... (November 3, 2008) On November 10, 2008, Circuit City filed for Chapter 11 bankruptcy. CNET: Circuit City files for bankruptcy (November 10, 2008)
After failing to find a buyer or a refinancing deal, Circuit City announced in January 2009 it would liquidate all 567 of its remaining stores.Fox 12: Circuit City to liquidate remaining US stores (January 16, 2009) On January 17, 2009, going-out-of business sales began at Circuit City retail outlets nationwide.Bloomberg: Circuit City Starts Going-Out-of-Business Sales at U.S. Stores (January 17, 2009)
Consumption Slowdown
Business analysts say that in times of a global economic crisis, consumer confidence and consumption decline results in substantial financial problems for international companies such as Circuit City. The electronics retailer was struggling for several years prior to the 2008 meltdown, which, according to the CEO, "has strained severely" the firm's working capital. Circuit City has also faced tough competition from Best Buy.BBC News: Circuit City set to close stores (November 3, 2008)
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