Circuit City Stores to liquidate as no agreement reached

Circuit City Stores to liquidate as no agreement reached

US based electronics retailer Circuit City Stores has announced that they have failed to reach a deal to sell the company.

Circuit City would now liquidate and shut down their stores in the country.

This is likely to help rivals gain more market share in these tough economic times. Best Buy is likely to be the biggest beneficiary.

Circuit City Vice Chairman James Marcum said in a statement: “Regrettably for the more than 30,000 employees of Circuit City and our loyal customers, we were unable to reach an agreement with our creditors and lenders to structure a going-concern transaction … and so this is the only possible path for our company.”

Circuit City had filed for bankruptcy in November last year. They have already closed down 155 stores. They now operate around 567 stores in the US market.