Galardi told a judge there are still bids for the Canadian business.Circuit City’s brand value was diminished in the 1990s as it faced tougher competition from Best Buy Co., which built bigger stores in better locations.
“It will bring to market a glut of big box spaces across the country,” said John Bemis, head of Jones Lang La Salle Inc.’s retail leasing team.“It will have one of the largest impacts on big box real estate across the country.” Circuit City filed for Chapter 11 in November as vendors started to restrict the flow of merchandise.The following 11 locations will begin closing sales immediately: * What on earth?! It must have been small, as it only had 3 employees.Was this a Liberty House that Macy’s “inherited” in the 2001 acquisition of that store, I wonder?Circuit City became the largest retailer to fall victim to the expanding financial crisis Friday, announcing it will shut down its remaining 567 U. stores at the cost of 34,000 more jobs after failing to sell the business. Wurtzel and himself a former chief executive of Circuit City.
The closure of the nation’s second-biggest consumer electronics retailer spells more trouble for the nations malls, and is the latest casualty of an unprecedented pullback in consumer spending that has claimed KB Toys, Mervyns LLC and Linens ’N Things. “I feel particularly badly for the people who are employed or until recently were employed.” Richmond, Va.-based Circuit City had been seeking a buyer or a deal to refinance its debt, but the hobbled credit market and consumer worries proved insurmountable.
Some employees were notified that they would lose their jobs and certain stores would begin close-out sales as early as Saturday.
“Since my childhood, that’s been where you go to buy electronics — Circuit City,” said 37-year-old Sonya Webb, who was standing outside a store in Chattanooga, Tenn., watching as an employee set a 46-inch Sony television in her car.
But Circuit City couldn’t secure the necessary financing or support from vendors.
“This is the only possible path for our company,” acting Chief Executive James A. “We are extremely disappointed by this outcome.” U. Bankruptcy Judge Kevin Huennekens gave final approval to the liquidation plan Friday afternoon.
Credit Suisse analyst Gary Balter told investors that Circuit City’s demise should “further secure Best Buy’s position as the leader.” Shares of Best Buy Co. The liquidation of Circuit City follows the worst holiday shopping season since at least 1969.