Circuit City Stores, the nation’s second-biggest consumer electronics retailer, reached an agreement with liquidators on Friday to sell the merchandise in its 567 U.S. stores after failing to find a buyer or a refinancing deal.
Mel Evans / AP
A Circuit City store in Mount Laurel, New Jersey.
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The company, which employs more than 30,000 employees, said in court papers it has appointed Great American Group, Hudson Capital Partners, SB Capital Group and Tiger Capital Group as liquidators.
Calls to the Richmond, Va.-based company and the liquidators were not immediately returned.
CNBC’s Margaret Brennan breaks news of the pending liquidation.
It had been exploring strategic alternatives since May, when it opened its books to Blockbuster. The Dallas-based movie-rental chain made a takeover bid of more than $1 billion with plans to create a 9,300-store chain to sell electronic gadgets and rent movies and games. Blockbuster withdrew the bid in July because of market conditions.
More recently, it was suspected that Golden Gate Capital, a San Francisco private equity firm, may have purchased the retailer, but it was unable to raise funds for the purchase, sources told CNBC.
Circuit City, which said it had $3.4 billion in assets and $2.32 billion in liabilities as of Aug. 31, said in its initial filings that it planned to emerge from court protection in the first half of this year.
Under court protection, Circuit City has broken 150 leases at locations where it no longer operates stores. The company already closed 155 stores in the U.S. in November and December.
U.S. Bankruptcy Judge Kevin Huennekens had given the company permission to liquidate if a buyout was not achieved.
Many people had thought that the year would bring in an instant change for the retail companies, but anything has yet to change for the best, in fact, things are getting worse. Many big retail companies are either going out of business or cutting down on their chain of stores across the country. One of the latest chains to cut down on size due to this recession crisis is Macy’s Read the rest of this entry »
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Can you believe that while this country is going through a recession and banks are going under, that these old motherfuckers are spending YOUR tax money at a spa getting facials and massages? These dudes are spending tax dollars at spas and salons while we are busting our ass, trying to keep gas in the tank and food on the table. This is some bullshit.
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