Circuit City closing 155 stores and cutting 17% of the domestic workforce
Circuit City Stores Inc is closing 155 stores and considering all options to restructure its business as the consumer electronics retailer struggles with a deteriorating liquidity position and tighter credit conditions from vendors. Circuit City said it would also cut 17 percent of its domestic workforce as part of the store closings.
ircuit City said stores slated for closure would not open on November 4, and closing sales would begin on November 5. According to its website, the company had nearly 46,000 employees at the end of February. Circuit City has been trying to rebuild profitability and restore investor confidence over the past year in the face of intense competition from Best Buy Co Inc, which has been gaining market share in key electronics categories.
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