Circuit City to close 155 stores across the U.S.

— 11:22 AM on November 3, 2008

Just as rumored, Circuit City looks like it's going to close stores en masse in order to avoid bankruptcy. The store chain has announced it will shut 155 U.S. stores that are "underperforming or are no longer a strategic fit for the company." Circuit City also intends to reduce the number of new stores it opens in the future and "aggressively [renegotiate]" certain leases in order to reduce rents.

The announcement includes a list of some of the company's recent troubles, including a greater-than-expected drop in sales and profits due to "waning consumer confidence and a significantly weakened retail environment." Circuit City says its vendors have also become less trusting because of its latest financial results announcement (in which it posted a $239-million loss), and some are now asking to be paid before they ship goods. Oh, and the store chain complains that the federal government owes it a tax refund worth around $80 million.

You can peruse a PDF list of the closing stores by clicking the link on this page. Stores are closing in 28 states by my count, from Alabama to Wisconsin. Circuit City stresses that it will keep 566 other stores open across the country, though.

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