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Bankrupt Circuit City Stores Inc. announced Friday it was unable to work out a sale of the company, and would begin closing its 567 U.S. stores. The company's 765 retail stores in Canada will not be affected.
The company filed for Chapter 11 bankruptcy in November 2008, meanwhile closing 155 of its U.S. stores in November and December. The Beaumont and Port Arthur locations remained open.
Circuit City opened at the Shoppes of Port Arthur on U.S. 69 near FM 365 in September 2007, The Enterprise previously reported.
Beaumont's store near Parkdale Mall has been open since January 2008. That store previously was on Eastex Freeway in the Parkdale Village Shopping Center.
The closings affect 34,000 employees.
The Beaumont store had 85 employees, The Enterprise had reported last January.
Circuit City spokesman Jim Babb could not confirm that number, and did not know how many employees worked at the Port Arthur store.
Babb said customers will be able to redeem Circuit City gift cards at full value during the liquidation sales, but will have no value once the stores close.
Stores in liquidation will accept cash, Circuit City gift cards and most credit cards. Personal checks will not be accepted, and all sales are final.
"We are extremely disappointed by this outcome," Circuit City's vice chairman, James A. Marcum, said in a statement. "We were unable to reach an agreement with our creditors and lenders to structure a going-concern transaction in the limited timeframe available, and so this is the only possible path for our company."
According to the Associated Press, Circuit City lawyer Gregg Galardi said two buyers had been looking to buy the company in a shrunken form, but Circuit City couldn't secure the necessary financing or support from vendors.
It is unlikely shareholders will receive anything from the bankruptcy estate, according to a news release on Circuit City's Web site.
Circuit City shares traded at 10 cents per share on the New York Stock Exchange, unchanged from the day before.
By contrast, shares of Best Buy Co. rose $2.20, about 8 percent, to $29.34.
Conn's shares rose $1.17, more than 10 percent, to $12.16. Conn's trades on the technology-heavy Nasdaq Stock Market.
To see more of The Beaumont Enterprise, or to subscribe to the newspaper, go to http://www.southeasttexaslive.com. Copyright (c) 2009, The Beaumont Enterprise, Texas Distributed by McClatchy-Tribune Information Services. For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.
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