When will circuit city start liquidating
ATLANTA/RICHMOND, Virginia (Reuters) - Bankrupt electronics retailer Circuit City Stores said on Friday it will liquidate its assets and shutter hundreds of U. stores after failing to reach a deal to sell the company. Its demise paves the way for larger rival Best Buy Inc to boost sales and gain clout with suppliers as the leading electronics retailer. and so this is the only possible path for our company,” Vice Chairman James Marcum said.
Circuit City is one of the largest retail bankruptcies in the current U. Private equity firm Golden Gate Capital and Mexican retail and media tycoon Ricardo Salinas Pliego, who owns more than 28 percent of the company, had indicated an interest in bidding for the company, Gregg Galardi, a lawyer representing Circuit City, told the bankruptcy court in Richmond. Shares of Best Buy, which analysts have said stood to gain longer-term if Circuit City went out of business, closed up 8.1 percent.
“This is the only possible path for our company,” acting Chief Executive James A. “We are extremely disappointed by this outcome.” U. Bankruptcy Judge Kevin Huennekens gave final approval to the liquidation plan Friday afternoon.
Some employees were notified that they would lose their jobs and certain stores would begin close-out sales as early as Saturday.
Analysts had warned the move could hurt morale and drive away customers.
Marvin Allen, 46, of Cleveland, Tenn., was at a Chattanooga store Friday shopping for a computer desk.
Circuit City’s liquidators will continue to accept gift cards throughout the liquidations, Galardi told the court.
Bankruptcy Judge Kevin Huennekens approved the plan to liquidate Circuit City, and the No. “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 ...