Circuit City is closing three Columbus area stores and announced Monday that it filed for bankruptcy protection.
The electronic supplier based in Richmond, Va. for the last 60 years announced the closing of 155 stores nationwide because of slumping sales.
Sara Ferne/The LanternCircuit City customers will have to find an alternative place to shop soon. Since filing bankruptcy in November, the company will be closing three of their Columbus-area locations in upcoming months.The chain lost $319.9 million last year and was down $239.2 million at the end of August, according to Business First of Columbus. Under Chapter 11 bankruptcy, Circuit City is allowed to continue operating while working on a plan to revive the business.
Chapter 11 puts a freeze on creditor and debtor transactions but allows the business to continue to sell products to customers under court supervision. A judge will monitor the reorganization and, if it is taking too long, will force the company to liquidate or appoint someone else to run the firm.
For the past year the chain has faced financial woes. Its stock fell 95 percent earlier in the summer, according to Business First.
The closings are due to waning customer confidence and the weakened economy, according to a Circuit City press release.
Acting President and Chief Executive Officer Jim Marcum addressed customer concerns in a letter released to the public.
“As a result of these changes,” he said, “we will now be better positioned to focus our resources on a smaller number of stores so that we can ensure better overall service during this holiday shopping season.”
The Hilliard location on Hilliard-Rome Road opened in February as a concept store and will be closed after Christmas.
“We love this place,” said Melanie Roming, a sales associate. “But we are worried about what is going to happen. I haven’t even started looking for a job yet.”
Investors and customers can follow developments on Circuit City’s Web site.
“There is a lot of difficult information to understand at this time,” said customer support coordinator Daschelle Jones. “But everyone’s questions will get answered.”
Amy Hoover can be reached at [email protected].
