Richmond, Va. — Circuit City Stores 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 CEO of Circuit City Stores, in a prepared statement.
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 Firedog services operations, the status of its Canadian operations and plans for the company's bankruptcy proceedings.
The chain 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, Circuit City said.
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.
Visit www.TWICE.com for further details and reaction.