Feeds

Circuit City mulls mass layoffs, store closures

Call it urban decay

Eight steps to building an HP BladeSystem

Circuit City may lay off thousands of workers and shut down at least 150 stores to avoid filing for bankruptcy protection, according to reports.

The Wall Street Journal quoted unnamed sources as saying the second-largest US consumer electronics retailer is considering the culling as a way to get through the holiday season.

The company is also in talks with investment bank Rothschild to guide talks for emergency funding. Lenders have shown little interest in financing the company.

The paper reports Circuit City investors want to avoid filing for bankruptcy before the holiday shopping season, fearing customers won't trust its ability to honor extended warranties on products like laptops and TVs. Extended warranty sales make up a healthy percentage of Circuit City's profits.

"The management team, board of directors, and its strategic financial advisers are conducting a comprehensive review of all aspects of our business to determine the best method of accelerating our turnaround," Circuit City spokesman Bill Cimino told the WSJ.

Earlier this month, the struggling retailer announced it would cut back on the number of stores it planned to open by the end of this fiscal year, ending February 28.

The WSJ said Circuit City execs are also pondering how much money the company could raise by liquidating hundreds of millions of dollars in inventory.

The company last reported it had about 715 stores and outlets in the US and 772 in Canada. ®

Mobile application security vulnerability report

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
Bose says today IS F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.