Circuit City Going out of Business, Liquidating Inventory

Circuit City Liquidation

Circuit City is the largest retailer to close due to the expanding financial crisis. They announced it will shut down its remaining 567 U.S. stores at the cost of 34,000 more jobs after failing to sell the business.

The closure adds to the nation’s retail woes and spells more trouble for the nations malls, and is the latest casualty of the severe decline in consumer spending that has claimed KB Toys, Mervyns LLC and Linens ’N Things.

Circuit City had been avidly seeking a last minute buyer or a refinancing deal for its debt, but the troubled credit market proved impossible to work with. Negotiations with potential buysers for an acquisition extended past midnight Thursday before finally falling through.