Chalk this announcement to the downturn in the economy, even though Circuit City was going downhill well before the economy started going south. Announced yesterday, Circuit City announced that the company will close several stores.
Circuit City Stores announced Monday it plans to close 155 stores and lay off 17 percent of its workforce in the U.S., as it aims to restructure its business amid a tightening credit market and downturn in business.
Over the past few weeks, the retailer’s financial health has become more dire and, according to a report in The Wall Street Journal, was considering restructuring moves as a means to avoid a Chapter 11 reorganization bankruptcy filing.
The struggling electronics retailer noted in its announcement that not only have its sales dropped amid an economic slowdown and loss in consumer confidence, but also its suppliers have begun cutting back on the level of credit they are extending to the retailer.
A list of the closing stores can be found here (PDF). Stores of notice here in Louisiana include one store in Baton Rouge at Cortana Mall and three in the New Orleans area: Westbank on Lapalco Blvd., Kenner and Slidell.