Open

Coming up

Don't miss

Replay


LATEST SHOWS

AFRICA NEWS

Kenya : Police arrest 8 over Mombasa rampage

Read more

FOCUS

Overfishing and the global appetite for bluefin tuna: can Tokyo turn the tide?

Read more

MEDIAWATCH

Too many graphic images from Gaza ?

Read more

FASHION

Who's next in Paris, an event with international ready-to-wear and fashion accessories collections

Read more

ENCORE!

Tunisia's Carthage International Festival turns 50

Read more

THE OBSERVERS

Muslims and Christians clean up Bangui, and violence spirals out of control in Algeria's Gardaia

Read more

IN THE PAPERS

Is there such thing as 'telegenic' victims of war?

Read more

IN THE PAPERS

2014-07-22 07:21 IN THE FRENCH PRESS

Read more

THE INTERVIEW

Michel Sidibé, UNAIDS Executive Director

Read more

  • A call for harmony in riot-hit ‘Little Jerusalem’ Paris suburb

    Read more

  • Israel identifies ‘missing’ soldier in Gaza

    Read more

  • Hollande says French warship delivery will ‘depend on Russia’s attitude’

    Read more

  • Colombia's Rodriguez signs '€80m' contract with Real Madrid

    Read more

  • French Jews mourn French-Israeli soldier killed in Gaza

    Read more

  • Ukraine rebels release bodies, black boxes from flight MH17

    Read more

  • Widodo poised to become Indonesian president

    Read more

  • An ‘explosion of violence’: French press reacts to Gaza protests

    Read more

  • Notorious ‘VIP’ prison in Paris closed for renovations

    Read more

  • Christians in Iraq's Mosul face execution or exodus

    Read more

  • Scores killed as Libyan militias fight over airport

    Read more

  • Ukraine football players refuse to return home after friendly in France

    Read more

  • China steps up communist education to guard against ‘moral decline’

    Read more

  • French rugby stars attacked with machetes and swords

    Read more

Business

Circuit City to liquidate, shutter stores

Latest update : 2009-01-16

Bankrupt electronics retailer Circuit City Stores has said it will liquidate its assets and shutter hundreds of U.S. stores after failing to reach a deal to sell the company.

AFP - Electronics retailer Circuit City said Friday it would liquidate all its 567 US stores after failing to restructure the company, throwing the future of its 30,000 workforce into uncertainty.
   
The action came after the company based in Richmond, Virginia, filed for bankruptcy protection in November, the first major retailer to file for Chapter 11 amid a prolonged recession.
   
"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," said James Marcum, chief executive officer for Circuit City Stores.
   
"And so this is the only possible path for our company," he said in a statement. "We are extremely disappointed by this outcome."
   
Circuit City's operations in Canada, where it has about 765 retail stores and dealer outlets and employs about 3,000 people, will not be affected by the US action, the company said.
   
In announcing its bankruptcy filing action in November, the company had said it obtained a commitment from its creditors for a 1.1 billion dollar credit line to shore up its working capital base.
   
But the deteriorating economic situation has dampened retail sales.
   
Latest data show retail sales fell for the sixth straight month in December in a sharp consumer pullback. Retailers had hoped of some recovery during the recent holiday season but to no avail as consumer spending continued to shrink.
   
"We had hoped to be able to emerge from Chapter 11 bankruptcy protection as a stronger, more competitive company and we made significant progress during the reorganization to improve our business," Circuit City said.
   
"Unfortunately, the economic climate is so poor that we have no choice other than liquidation."
   
Liquidators are to start arriving at stores across the United States over the weekend, and closing sales will start as early as Saturday and expected to wrap up by the end of March, the company said.
 

Date created : 2009-01-16

COMMENT(S)