Circuit City Closes,
30,000 jobs are lost.
This information is posted on the
Circuit City Website www.circuitcity.com,:
"RICHMOND, Va., Jan 16, 2009 /PRNewswire-FirstCall via COMTEX News
Network/ -- Circuit City Stores, Inc. announced today that it will
seek Bankruptcy Court approval to begin the process to liquidate the
assets of the company.
 "We
are extremely disappointed by this outcome. The company had been in
continuous negotiations regarding a going concern transaction.
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," said James A. Marcum, vice chairman and
acting president and chief executive officer for Circuit City
Stores, Inc.
Circuit City will provide more details in the near term about the
plans for the liquidation of the stores and other assets, the status
of the company's Web site and firedogSM services operations, the
status of its Canadian operations and plans for the company's
bankruptcy proceedings.
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 company filed for Chapter 11 bankruptcy protection in November
2008. The case number for Circuit City's Chapter 11 filing is
08-35653. Additional information can be found by visiting the
company's investor information home page at http://investor.circuitcity.com
and clicking on "Breaking News" and at the Claims Agent's Web site
at www.kccllc.net/circuitcity.
About Circuit City Stores, Inc.
Circuit City Stores, Inc. (OTC: CCTYQ) is a specialty retailer of
consumer electronics and related services. At December 31, 2008, the
domestic segment operated 567 stores in 153 U.S. media markets. At
December 31, 2008, the international segment operated through
approximately 765 retail stores and dealer outlets in Canada.
Circuit City operates Web sites at www.circuitcity.com,
www.thesource.ca and www.firedog.com.
Forward-Looking Statements
Statements made in this release may be considered forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995 and are subject to risks and uncertainties. These
forward-looking statements include, without limitation, statements
regarding the company's expectations concerning the bankruptcy
process. Actual results may differ materially from those included in
the forward-looking statements due to a number of factors,
including, without limitation, developments in the bankruptcy
proceedings, the results of the liquidation sales and other matters.
" |
