Lights Out for 567 Circuit City Stores
The nation's second largest consumer electronics retailer has thrown in the towel. Circuit City announced on Friday it will close 567 locations and idle 34,000 jobs. The electronics retailer has been on a downward spiral since filing for Chapter 11 in November. In addition to Circuit City, NY & Co, Gottschalks, Supervalu and a total of 10 others declare bankruptcy or announce store closures.
On Friday, Circuit City announced all of its U.S. locations will close by the end of March 2009. The 60-year-old retailer struggled to find a buyer after filing for Chapter 11 protection in November.
A joint venture group consisting of Great American Group, SB Capital Group, Tiger Capital Group and Hudson Capital Partners will conduct going-out-of-business sales. Approximately $1.8 billion in retail inventory will be liquidated, according to Andy Gumaer, CEO of Great American Group. "Markdowns could become as steep as 90 percent in the final days," says Gumaer. "Everything will be liquidated to the bare walls."
The retailer's Web site and call center have ceased operations since January 18, 2009.
Circuit City is not the only retailer to be deeply impacted by the troubled economy. Here are 10 other retailers that recently announced store closings or declared bankruptcy.
Macy's: The nation's largest department store chain plans to shutter 11 underperforming stores in nine states. The closures affect approximately 960 employees. Macy's December same-store sales declined 4 percent in December and 4.6 percent year-to-date.
Virgin Megastore: The legendary Times Square location closes its doors in April 2009 and will be replaced by Forever 21. The Virgin chain was sold to the Related Companies and Vornado Realty Trust in 2007. Both companies cited that they could make more money if they leased the space to the trendy teen apparel chain.
New York & Co: The specialty retail chain plans to close 10 to 15 stores in 2009 and cut more than 300 management and corporate positions as part of a multi-year cost-cutting program. The New York-based retailer plans to close up to 50 stores over five years.
Supervalu: The grocer plans to close about 50 stores in its fiscal 2009 fourth quarter. The supermarket retailer also plans to open fewer stores and scale back on remodeling stores. The changes will allow Supervalu to cut back its capital spending to about $850 million in 2010, according to Supervalu.
Gottschalks: The regional department store chain filed for Chapter 11 on January 14, 2009 and put itself up for sale. The company said business at its stores would continue as usual during the reorganization. Gottschalks, which sells apparel, accessories and home merchandise, currently operates 58 department stores and three specialty apparel stores.
Goody's Family Clothing: The 59-year-old discount clothing chain began liquidating all of its assets in early January 2009, just four months after the retailer emerged from Chapter 11 bankruptcy protection. The retailer originally filed for Chapter 11 in June. It is uncertain what will happen to the company's 9,800 workers after the liquidation.
Blue Tulip: A retailer of 20 high-end gift shops filed for Chapter 11 on January 5, 2009. The retailer acknowledges that the economic downturn severely hurt the company's performance and its ability to satisfy debt obligations. The chain plans to liquidate its merchandise inventory and close its stores before the end of January.
Cost Plus: The discount retailer, which operates the World Market stores, announced it will close 26 stores nationwide in a cost-cutting move. For the nine weeks ended January 3, 2009, the company's sales were $278.8 million, down from $291.8 million a year earlier. The retailer hopes to save $21 million a year through the closings.
Against All Odds: The hip-hop retail chain filed for Chapter 11 on January 5, 2009. With 64 stores in eight states, Against All Odds plans to close its West Coast stores and reorganize its Northeast locations or find a buyer for those stores. The company intended to open 25 stores in 2009 but has since canceled those plans.
Parent Company: The Web-based retailer of children's products file for Chapter 11 bankruptcy protection in late December. The company made the filing along with nine of its subsidiaries, including eToys. The Parent Company cites that it was hit hard by the freeze in consumer spending.
For more up-to-date news on store closings and retail bankruptcies, see:
Consumers Skittish as 10 More Retailers Announce Store Closings
Circuit City Hits the Wall, Eight More Retailers Announce Store Closings
Circuit City Struggles, Mervyns and Linens Folds, More Stores Close
Toxic Economy Shutters More Stores
The Big Squeeze: 10 More Chain Stores Closing Their Doors
Steve and Barry's Stumble, More Retailers Close Doors
Retailers on the Ropes, 12 More Chains Announce Closings
Three More Retailers Drop in the Toughest Economy in Years
Retail Bankruptcies and Store Closings Signs of Grim Economy
Sign of the Times: 6,000 Retail Stores Closing in 2008
On Friday, Circuit City announced all of its U.S. locations will close by the end of March 2009. The 60-year-old retailer struggled to find a buyer after filing for Chapter 11 protection in November.
A joint venture group consisting of Great American Group, SB Capital Group, Tiger Capital Group and Hudson Capital Partners will conduct going-out-of-business sales. Approximately $1.8 billion in retail inventory will be liquidated, according to Andy Gumaer, CEO of Great American Group. "Markdowns could become as steep as 90 percent in the final days," says Gumaer. "Everything will be liquidated to the bare walls."
The retailer's Web site and call center have ceased operations since January 18, 2009.
Circuit City is not the only retailer to be deeply impacted by the troubled economy. Here are 10 other retailers that recently announced store closings or declared bankruptcy.
Macy's: The nation's largest department store chain plans to shutter 11 underperforming stores in nine states. The closures affect approximately 960 employees. Macy's December same-store sales declined 4 percent in December and 4.6 percent year-to-date.
Virgin Megastore: The legendary Times Square location closes its doors in April 2009 and will be replaced by Forever 21. The Virgin chain was sold to the Related Companies and Vornado Realty Trust in 2007. Both companies cited that they could make more money if they leased the space to the trendy teen apparel chain.
New York & Co: The specialty retail chain plans to close 10 to 15 stores in 2009 and cut more than 300 management and corporate positions as part of a multi-year cost-cutting program. The New York-based retailer plans to close up to 50 stores over five years.
Supervalu: The grocer plans to close about 50 stores in its fiscal 2009 fourth quarter. The supermarket retailer also plans to open fewer stores and scale back on remodeling stores. The changes will allow Supervalu to cut back its capital spending to about $850 million in 2010, according to Supervalu.
Gottschalks: The regional department store chain filed for Chapter 11 on January 14, 2009 and put itself up for sale. The company said business at its stores would continue as usual during the reorganization. Gottschalks, which sells apparel, accessories and home merchandise, currently operates 58 department stores and three specialty apparel stores.
Goody's Family Clothing: The 59-year-old discount clothing chain began liquidating all of its assets in early January 2009, just four months after the retailer emerged from Chapter 11 bankruptcy protection. The retailer originally filed for Chapter 11 in June. It is uncertain what will happen to the company's 9,800 workers after the liquidation.
Blue Tulip: A retailer of 20 high-end gift shops filed for Chapter 11 on January 5, 2009. The retailer acknowledges that the economic downturn severely hurt the company's performance and its ability to satisfy debt obligations. The chain plans to liquidate its merchandise inventory and close its stores before the end of January.
Cost Plus: The discount retailer, which operates the World Market stores, announced it will close 26 stores nationwide in a cost-cutting move. For the nine weeks ended January 3, 2009, the company's sales were $278.8 million, down from $291.8 million a year earlier. The retailer hopes to save $21 million a year through the closings.
Against All Odds: The hip-hop retail chain filed for Chapter 11 on January 5, 2009. With 64 stores in eight states, Against All Odds plans to close its West Coast stores and reorganize its Northeast locations or find a buyer for those stores. The company intended to open 25 stores in 2009 but has since canceled those plans.
Parent Company: The Web-based retailer of children's products file for Chapter 11 bankruptcy protection in late December. The company made the filing along with nine of its subsidiaries, including eToys. The Parent Company cites that it was hit hard by the freeze in consumer spending.
For more up-to-date news on store closings and retail bankruptcies, see:
Consumers Skittish as 10 More Retailers Announce Store Closings
Circuit City Hits the Wall, Eight More Retailers Announce Store Closings
Circuit City Struggles, Mervyns and Linens Folds, More Stores Close
Toxic Economy Shutters More Stores
The Big Squeeze: 10 More Chain Stores Closing Their Doors
Steve and Barry's Stumble, More Retailers Close Doors
Retailers on the Ropes, 12 More Chains Announce Closings
Three More Retailers Drop in the Toughest Economy in Years
Retail Bankruptcies and Store Closings Signs of Grim Economy
Sign of the Times: 6,000 Retail Stores Closing in 2008