Circuit City, the second-busy consumer electronics retailer, has reached an agreement with its liquidators after failing to find a buyer or a deal to refinance the company. The liquidation will also see all of its employees, which is around the 30,000 mark, at risk of losing their jobs, which is bad in this economic climae.
Court papers have said that it has appointed Great American Group, Hudson Capital Partners, SB Capital Group and Tiger Capital Group as liquidators.
The company filed Chapter 11 bankruptcy protection in November, but has explored strategic alternatives since May, including a deal that would see Blockbuster to make a $1 billion takeover bid to create a 9,300-store chain of selling gadgets and renting movies and games. However, that deal fell through because of the market conditions.
The company also has closed 155 stores during November and December.
Image: qnr – Gone for a while/Flickr