Friday, January 16, 2009

Circuit City officially shutting down

[caption id="attachment_1218" align="alignright" width="129" caption="Circuit City shutting down"]Circuit City shut down[/caption]

Circuit City announced Friday, January 16th that it will be shutting its doors forever.  The company filed for bankruptcy with the U.S. Bankruptcy Court for the Eastern District of Virginia which a judge approved today.

The company now has to lay off 34,000 of its employees, who will receive 60 days notice prior to termination. "We are extremely disappointed by this outcome.  We were unable to reach an agreement with our creditors and lenders to structure a going-concern transaction in the limited time frame available, and so this is the only path for our company." said James Marcum, acting CEO for Circuit City.

The company is going to start the liquidation process starting this Saturday and continue until the 31st of March, (pending court approval).  Their website and call center will shutdown after the 18th of January.

Approximately 765 of its stores in Canada will continue operation during the liquidation process.  Those stores were not affected by this bankruptcy.

So if you have any old Circuit City gift cards laying around, you better use them soon before it's too late.