Elyria’s Circuit City store to close
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RICHMOND, Va. (AP) — Circuit City Stores Inc. said Monday it is pulling the plug on about 20 percent of its U.S. stores in an effort to return the nation’s No. 2 consumer electronics retailer to profitability.
The Richmond, Va.-based company said it will shutter 155 of its more than 700 stores in 55 markets, including 11
The
The company said it expects the stores it is shuttering, which generated about $1.4 billion in net sales in fiscal 2008, will not open on Tuesday and store closing sales will begin on Wednesday.
The move comes as
“The weakened environment has resulted in a slowdown of consumer spending, further impacting our business as well as the business of our vendors,” James A. Marcum, vice chairman and acting president and chief executive officer said in a statement. “The combination of these trends has strained severely our working capital and liquidity.”
Marcum called the decision to close stores “difficult, but necessary.”
It also said it has been unable to collect an income tax refund of about $80 million that
The company has had only one profitable quarter in the past year, posting a wider second-quarter loss in September with a 13 percent decline in sales at stores open at least a year. Its results have weakened as the company faces significant declines in traffic, heightened competition from rival Best Buy Co. and others and a weakened brand position.
The company said last week that the New York Stock Exchange has warned it that its stock price is not high enough for continued listing.
The NYSE said
In order to regain compliance with the NYSE,
A major Circuit City shareholder — Classic Fund Management AG, a Liechtenstein-based asset management company — also said in a regulatory filing last week that it cut its holdings to 8.2 million shares, or about 4.8 percent, from 9.5 million shares, or 5.6 percent. It did not disclose a reason for the change.
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Lorain/Elyria, OH


Here we go again. When will it stop? Bennigan’s which was not opened for quite sometime, several stores in the mall closed. Fazoli’s closed. I’d sure hate to be the one going home to my family letting them know I’ll be losing my job. My heart goes out to you. Honestly, I wish we could save the jobs we already have rather than opening new busniesses like Chipolte that may not last long. How long before Olive Garden, Applebee’s or Eat N Park closes? I hope someone does something before it’s too late
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As soon as Obama starts redistributing the wealth there will be many more closures, most can barely stay afloat now, much less handle more of a tax burden, as soon as Obama imposes his tax on business there is going to be allot less business around and that means allot less jobs, so the welfare line will be the new way of life for many. The working class wealth will be redirected to public assistance. If you think it is hard to find a GOOD job now , you just wait .
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I’m shocked to see this store close…. We are frequent shoppers there, It will be greatly missed and our prayers go out to the workers loosing their jobs.
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it just never end trying to tie things to Obama. These problems are happening under the current administration. I gues more of the same will improve things.
Obama also says companies can earn tax credits by creating jobs and keeping jobs in the US.
Do you know for a fact that these companies will have their taxes increased?
It seems if they’re not making any money I don’t think they have to worry much about their taxes increasing.
Who do you think shops these businesses? The middle class. If they have more money in their pockets they also have more to spend at these businesses.
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Good riddance. That store sold quality junk. In fact their little teenie bopper workers were more interested in watching tv then helping. Their customer service was the worst.
BEST BUY is so much better.
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The employees can go to Oberlin and get a job. I hear Casa Fiesta has a couple openings.
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The company said it expects the stores it is shuttering, which generated about $1.4 billion in net sales in fiscal 2008,.
I think that is just over the 150K that obama is going to increase taxes on .
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Net sales - The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any discounts allowed.
So how much was their profit? If it were anywhere near that do you think they would be closing?
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