Circuit City Stores Inc., said Friday it will begin to liquidate its assets after failing to reach a deal with creditors and lenders for a potential sale of the company.
It has hired four liquidators which will sell all the remaining merchandise in 567 stores, Bloomberg reported today.
We are extremely disappointed by this outcome, said the firm's Chief Executive James A. Marcum in a statement on Circuit City's website.
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 in the limited timeframe available, and so this is the only possible path for our company, Marcum continued.
Circuit City is ranked as the second largest electronic retailer in the U.S. The company filed for Bankruptcy protection in November last year.