Circuit City Calls It Quits, Plans To Liquidate Assets; 30,000 Employees Let Go

imageBig box electronics retailer Circuit City is calling it a day after failing to reach an agreement with its creditors. The Richmond, VA., company is seeking Bankruptcy Court approval to start liquidating the assets of the company. The news comes after one of the worst Christmas season’s for retail in recent memory. About 30,000 employees will lose their jobs and its 567 stores will close. *Blockbuster* had tried to acquire Circuit City last year but the overtures were rejected. Although Circuit City eventually warmed to a deal, going so far as to open up its books to Blockbuster (NYSE: BBI), the talks between the two went nowhere. Release

Staci adds: This isn’t good for anyone — not the consumers, who will have less market choice; the device manufacturers, who will have fewer physical ways to reach people; the producers of games, videos and music, who need adjacency sales; even the big-box competitors, who rely on critical mass to draw consumers to bricks-and-mortars stores instead of online retailers. I’ll admit to a personal bias of sorts — I’ve been shopping for years at my local Circuit City, where they are waiting for word of how the liquidation will be handled. Unfortunately, the stores that aren’t broken are being dragged down by a company that literally has failed.

Photo Credit: geocam20000

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