Circuit City to Close All Stores
Circuit City has filed for Chapter 7 bankruptcy, meaning that it will close all of its stores and dispose of all of its assets. In a recent press release, Circuit City stated that it would be unlikely that any assets would remain for their common stockholders. Circuit City had announced earlier, in November 2008, that it had filed for Chapter 11 bankruptcy and would close some stores; the Chapter 7 filing ensures that all stores will be permanently closed and all employees will be let go. Circuit City still had 765 stores operational as of December 31, 2008. According to Associated Press, this number is only about 567 at of mid-January. 34,000 workers will be terminated in the United States and Canada. The status of Circuit City's "FireDog" brand of service and support is uncertain at this time.
Sources: Circuit City Investor Relations
San Jose Mercury News