Circuit City Stores Inc. plans to liquidate its remaining 567 U.S. stores and lay off 30,000 employees after failing to find a buyer or a refinancing deal. The Richmond retailer has local locations in San Francisco, Emeryville, Daly City, San Mateo, Hayward, Sunnyvale, San Jose, Santa Rosa and Vacaville. The nation’s second-biggest electronics retailer does not expect any money to be left from bankruptcy to pay its common stockholders anything. Circuit City filed for Chapter 11 bankruptcy protection in November.
Bankrupt Circuit City Stores Inc., the nation's second-biggest consumer electronics retailer, said Friday it failed to find a buyer and will liquidate its 567 U.S. stores. The closures could send another 30,000 people into the ranks of the unemployed. The company had been seeking a buyer or a deal to refinance its debt, but the hobbled credit market and consumer worries proved insurmountable. The liquidation of Circuit City is the latest fallout from the worst holiday shopping season in four decades. People have slashed their spending since the financial meltdown in September as they worry about their job security and declining retirement funds. Circuit City said in court papers it has appointed Great American Group LLC, Hudson Capital Partners LLC, SB Capital Group LLC and Tiger Capital Group LLC as liquidators.
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