With a share price that has dropped by 90 per cent since the beginning of the year, Circuit City has announced that it is to close 155 of its 711 US retail stores.
At the end of October, the company was warned that it could be delisted from the New York Stock Exchange after its share price averaged less than $1 for 30 days.
According to the Consumerist, a Circuit City insider said: “A team of liquidators will be coming in and taking control of the store. They will set prices as they see fit, and price match guarantee, employee discounts, CC circulars, and the new one price guarantee are all out the window. The price you see is the price you will pay, although it ought to be at a bit of a discount. Firedog services as well as car audio installation are gone immediately. Returns and warranties have to be taken to a CC that’s not closing. No new stock will be delivered, we just gotta crank away and sell off everything, and when it’s sold, we hit the road.”
Although a definitive date for the closures is yet to be announced, staff employment will be terminated “on or before December 31st.”