Circuit City shutting down 155 stores; Kingsport, JC locations not affected
Nov 4, 2008 at 12:00 AM
Local Circuit City stores in Kingsport and Johnson City are not affected by Monday’s announcement that the company will close 155 of its more than 700 stores nationwide. The Richmond-based company said Monday it will close 155 stores — or 20 percent of its locations across the country — in an effort to return to profi t a b i l i t y. Store closing sales will begin Wednesday. The company expects impacted stores to be shut down by the end of the year. About 17 percent of the company’s U.S. work force will be impacted. The company will also reduce new store openings and renegotiate certain existing leases. Circuit City has had only one profitable quarter in the past year, posting a wider second-quarter loss in September with a 13.3 percent decline in sales at stores open at least a year. Its results have weakened amid a deteriorating retail environment and heightened competition from rival Best Buy Co. and others. “Since late September, unprecedented events have occurred in the financial and consumer markets causing macro-economic trends to worsen sharply,” said James A. Marcum, vice chairman and acting president and chief executive officer of the c o m p a n y. “The weakened environment has resulted in a slowdown of consumer spending, further impacting our business as well as the business of our vendors. The combination of these trends has strained severely our working capital and liquidity, and so we are making a number of difficult, but necessary, decisions to address the company’s financial situation as quickly as possible,” Marcum said. The company is reviewing its operations while exploring strategic alternatives. “We deeply regret the impact today’s announcement will have on our associates, our guests and the communities where these stores are located. We truly are grateful to each of our associates for their many contributions to the company,” Marcum said. In Tennessee, Circuit City will close stores in Antioch, Collierville, Memphis and Spring Hill. In Virginia, the company will close stores in Charlottesville, Manassas and McLean. A list of store closings can be viewed online at h t t p : / / n e w s r o o m . c i r c u i t c i t y. c o m / a n n o u n c e m e n t . c f m .