Wired PR News — Reports from Circuit City confirmed rumors that at least 155 of its stores will be closing down in a bid to reduce on costs. This will result in elimination of seventeen percent of its workers which amounts to 7800 jobs.
This move follows the company’s loss posted in its last quarter amounting to $162.7 million. Soon after the announcement of the quarter results, there were various reports regarding the company’s plans to cut cost by closing down some of its stores.
This electronic retailer has also announced slowing down on opening of new stores and said it was considering various alternatives and plans which will help in restructuring of its business.
Circuit City’s shares fell below $1.00 for a continuous period of 30 days resulting in the delisting of the company from the New York Stock Exchange. The company is almost on the verge of bankruptcy.
James Marcum, the acting president of the company since the month of September, said the company deeply regrets causing negative impact on guests, communities and associates who are related to the stores that have been closed down. He also said they were grateful to them for their contributions towards the company.
Marcum took over the position from Phillip J. Schoonover. Philip held the position of CEO, chairman and president in the company. He resigned from his post just before the second quarter results announcements.
Circuit City cites the current economic turndown and severe liquidity crunch as the main reasons behind their decline. According to officials, the company is trying to work out various alternatives to come out of crisis.