The nation's No. 2 consumer electronics retailer said it will shut 155 of its more than 700 stores and leave at least a dozen markets entirely, including Phoenix and Atlanta, by Dec. 31. It will lay off about 17 percent of its domestic work force, which could affect up to 7,300 people.
Circuit City also said it will further cut back on new store openings and plans to work with landlords to renegotiate leases, lower rent or terminate agreements while it deals with tightening credit from its vendors.
The consumer electronics sector seems to be harder hit than any other (or perhaps that's just my perception), possibly because such purchases are highly discretionary. In any case, best wishes to the folks at CC (and Tweeter).
Update: Twice wins the Obvious Award for this week with a story noting that Circuit City's problems represent an opportunity for Best Buy.
Best Buy is anticipating a major restructuring of CE retailing over the next year and is prepared to absorb real estate and market share as businesses fail and storefronts close.
“We're sure there'll be material consolidation in the industry,” said Brian Dunn, president and COO, which will create “potential opportunities” for the No. 1 CE chain.