Circuit City to close all stores, Best Buy taking over world
Circuit City today asked a court's approval to pull the plug on the company's 567 remaining stores. Prepare for Best Buy world domination.
"We are extremely disappointed by this outcome," James Marcum, acting CEO for Circuit City, said in a statement. "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."
In a filing with the U.S. Bankruptcy Court for the Eastern District of Virginia, Circuit City - the No. 2 electronics retailer after Best Buy (BBY, Fortune 500) - said it had reached an agreement with four companies to start the liquidation process.
The company said the sale would begin Saturday and run until March 31, pending court approval.
Which means that, come this spring, Best Buy will be well-positioned to corner whatever market remains in this dismal economy. The Twin Cities-based company's stock has shot up 8% today.
Image cribbed from here.