Circuit City, the second largest electronics chain in the United States, is going to be liquidating the rest of its stores after it failed to find a buyer.
All its remaining stores will be shut down, and the company's 35,000 remaining employees will be out of a job.
More details after the jump.
MSNBC reports:
Circuit City Stores Inc., 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.
The company said in court papers it has appointed Great American Group LLC, Hudson Capital Partners LLC, SB Capital Group LLC and Tiger Capital Group LLC as liquidators. The company’s move to liquidate, first reported by CNBC Friday morning, means the retailer’s 35,000 employees will likely lose their jobs, the financial news channel said...
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.
This is really sad. I hold a special place in my heart for Circuit City, since it was a job there that helped get me through college.
That said, management made some horrible decisions that harmed the workers in the past five years or so. The first was when commissioned sales people were switched to hourly, and some of the top sales people were let go because they would have been making too much under an hourly rate.
Then, Circuit City laid off its top paid employees (those with seniority, expertise, and some loyalty) and told them they could reapply for a position with lower pay.
So I feel no love for Circuit City's management, but I really do feel for the remaining employees. Losing a job in this climate is tough, and I hope they can land on their feet.