Circuit City to close 13 Phoenix stores, latest victim of economyPosted: Updated:
UPDATE: Monday morning
RICHMOND, Va. -- Circuit City says it's closing about 20 percent of its U.S. stores, including its 13 Phoenix-area stores, in an effort to return the nation's second-largest consumer electronics retailer to profitability.
The Richmond, Va.-based company said Monday it will shutter 155 of its more than 700 stores in 12 markets by Dec. 31, laying off thousands of employees.
Circuit City has had only one profitable quarter in the past year, posting a wider second-quarter loss in September with a 13.3 percent decline in sales at stores open at least a year. Its results have weakened amid a deteriorating retail environment and heightened competition from rivals.
The company is reviewing its operations while exploring strategic alternatives.
(Copyright 2008 by The Associated Press. All Rights Reserved.)
PHOENIX - Another corporate chain is getting the ax by losing dozens of stores and thousands of employees as the 2008 holiday shopping season begins.
It is an attempt to keep Circuit City afloat. There are reportedly plans to close some locations while keeping many open but it also could mean hundreds of people losing their jobs in Arizona.
Circuit City employees in Phoenix got a letter Sunday saying their store location will be permanently closed and their employment terminated on or before December 31.
They are not alone. According to one employee who declined to go on camera, the company plans to close some 155 stores nationwide and all but one in Arizona, thus slashing thousands of jobs and hundreds of them right in Arizona.
The nation's No. 2 consumer electronics retailer has suffered from the slowed economy and heightened competition from rival Best Buy and others.
Since the beginning of the year Circuit City shares have lost more than 95% of their value.
Another employee tells 3TV this drastic move is the company's way of trying to get out of debt.
While Circuit City is closing many locations, they are not closing all of them the way Mervyn's and Linen's n Things are. Already in liquidation these stores have more foot traffic than they have seen in a long time because everyone seems to be switching up their spending habits.
Good deals are already in high demand as people continue to scale back on spending going into this holiday shopping season.
3TV was not able to reach anyone with the corporate office Sunday but were told a formal public announcement is coming on Monday and liquidation could happen as soon as Tuesday.