After struggling with Chapter 11 bankruptcy, Circuit City Stores Inc. has announced that it will seek Bankruptcy Court approval to begin liquidating its 567 US stores.
The company said it had been in negotiations with two parties to possibly refinance its debt or enable a sale, but failed to reach an agreement.
“We are extremely disappointed by this outcome,” said James A. Marcum, vice chairman, acting president/CEOCircuit City Stores Inc. said in a statement.
“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, and so this is the only possible path for our company.”
The company filed for Chapter 11 in November.
The company “does not anticipate any value will remain from the bankruptcy estate for the holders of the company’s common equity, although this will be determined in the continuing bankruptcy proceedings,” the statement said.
The electronics retailer will release more details in the near future about its liquidation plans, as well as the status of Circuitcity.com and firedogSM services operations, and the status of its Canadian operations.