Circuit City closing down stores to cut costs

Circuit City closing down stores to cut costs

Circuit City has announced that they are now planning to close down about 20 percent of its U.S. Stores.

The company said that they are working hard on returning back to profitability and this is just one of the several steps.

Circuit City added that they would close down 155 of its more than 700 stores in 55 markets.

This would result in elimination of about 17 percent of its domestic work force.

These stores would not open on Tuesday this week. Store closing sales would begin from Wednesday.

James A. Marcum, vice chairman of the company said in his statement: “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.”