Andre Yoskowitz
17 Jan 2009 1:49
Circuit City has begun liquidation sales at its remaining 567 U.S. stores, meaning the company will not be coming out of bankruptcy as hoped.
Last month, the giant retailer, which employs over 30,000 US workers, filed for Chapter 11 bankruptcy protection after suppliers cut off most credit.
The company estimated its remaining inventory at $1.3 billion and said creditors will receive 70.5 percent of all revenue from the liquidation. Stockholders will get nothing.
The liquidation sales will end on March 31st when the company completely goes out of business.
“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,” James A. Marcum, the current CEO added.