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Electronics retailer Circuit City has announced that it will be shutting down 155 of its retail stores, along with reducing new store openings. Citing the poor economy, weakened consumer confidence, and a rough retail environment, the company says that its profit margin has been impacted to the point that a reduction is necessary. In addition, the Circuit City claims that the federal government owes an $80 million tax refund towards the company that has not been paid. The affected stores won't be opening today, and store closing sales will begin tomorrow, November 5.
The company will also be reducing its number of new store openings, cutting out 10 locations that were expected to open. Circuit City will be renegotiating leases for its existing locations to reduce costs of upkeep, and says it is "considering all available options and alternatives to restructuring its business."
The Wall Street Journal's MarketWatch recently predicted this move to avoid bankruptcy, and it's certainly not welcome news for the people that Circuit City employs. For gamers, this means you may soon have one less place to go to pick up your titles. As a silver lining, though, store closing sales amid the busy release season may get you good deals on games that have recently come out.
link
epic ouch.
The company will also be reducing its number of new store openings, cutting out 10 locations that were expected to open. Circuit City will be renegotiating leases for its existing locations to reduce costs of upkeep, and says it is "considering all available options and alternatives to restructuring its business."
The Wall Street Journal's MarketWatch recently predicted this move to avoid bankruptcy, and it's certainly not welcome news for the people that Circuit City employs. For gamers, this means you may soon have one less place to go to pick up your titles. As a silver lining, though, store closing sales amid the busy release season may get you good deals on games that have recently come out.
link
epic ouch.
