Circuit City to Liquidate

Circuit City added that it has appointed four firms as liquidators, Great American Group WF LLC; Hudson Capital Partners LLC; SB Capital Group LLC; and Tiger Capital Group LLC.

On January 10th, it was reported that Circuit City needed a buyer or would be forced to go out of business.

Circuit City has been struggling for some time, despite being the number two electronics retailer. Besides trailing Best Buy, it also had to face Wal-Mart, and made several missteps including firing higher-earning (and more experienced) sales associates. One of the complaints of customers has continued to be the inexperience of the current associates.

The recession, of course, was the straw that broke the camel's back.

Circuit City closed 155 stores last year; this new development will result in the closure in its remaining 567 U.S. stores as well as resulting in the loss of 30,000 more jobs.

James A. Marcum, vice chairman and acting president and chief executive officer for Circuit City Stores, Inc. said:

"We are extremely disappointed by this outcome. The company had been in continuous negotiations regarding a going concern transaction. 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 in the limited timeframe available, and so this is the only possible path for our company."

CNN Money indicates that the liquidation sale may begin as early as Saturday and run through March 31st.