Circuit City closing 3 Colo. stores
Denver Business Journal
Circuit City Stores Inc. is closing 155 U.S. stores, including three in Colorado, because of the credit crunch and slowing economy, the company said Monday.
The locations of the three affected Colorado stores are:
- 10602 Melody Drive East in Northglenn
- 9851 S. Parker Road in Parker
- 7670 N. Academy Blvd. in Colorado Springs
Richmond, Va.-based Circuit City (NYSE: CC) said its liquidity position had deteriorated following announcement of its second-quarter earnings, prompting some of its vendors to restrict payment terms and credit.
At the same time, waning consumer confidence and a weakening retail environment have hurt sales more than expected, company officials said. The company has been unable to collect a $80 million income tax refund that it believes it is owed by the federal government.
Circuit City officials said that the affected stores won’t open on Nov. 4, and that store closing sales will begin on Nov. 5. The sales are expected to be completed by the end of the year.
In addition, the company will not open at least 10 stores that were scheduled to open during the current fiscal year. Other than existing commitments, the company expects to suspend store openings beginning in fiscal 2010.
Circuit City officials said they would begin immediately renegotiating existing store leases in an effort to reduce rents.
Circuit City has 14 stores within 100 miles of Denver, according to the company’s website.
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