US electronics retailer collapses with the loss of 30,000 jobs

Circuit City, the American electronics retailer, is to close its doors after a buyer could not be found for its 500-plus stores.

As a result of the collapse, 30,000 jobs will be lost in an economy already suffering from a recession and job losses.

Today’s announcement from the retailer comes just two months after the company filed for Chapter 11 bankruptcy protection. Liquidators will now sell off the firm’s assets.

Chairman James Marcum said he was disappointed and said the decision was ‘regrettable‘.

Circuit City has been under pressure of late as sales fell sharply amid the economic downturn and it was losing customers to bigger rival Best Buy.

The news comes in the same week as the US Commerce Department said that retail sales in the world’s largest economy have fallen for the sixth consecutive month.

Fears of a more prolonged recession are rife after figures show that US shoppers visited the stores less over the festive period.

In December, sales plummeted by 2.7% – more than double analysts predictions and followed a fall of 2.1% decline in November. Retail sales for the 2008 year were down 0.1%.

Story link: US electronics retailer collapses with the loss of 30,000 jobs