said Monday that it's closing 155 U.S. stores, reducing its planned openings and considering a number of options to restructure its business.
The Richmond, Va., company said the moves were partly due to its deteriorating liquidity position and continued weakness in the economy. Shares of Circuit City rose 4 cents to 30 cents in recent trading.
Circuit City, which has long been overshadowed in the consumer-electronics sector by
, said a number of factors have hurt its financial state in recent weeks, including declining consumer confidence and slower spending.
Among other things, the company hasn't been able to collect a roughly $80 million tax refund that the company believes it should be getting from the federal government.
For fiscal 2008, the stores that are being shut generated approximately $1.4 billion in net sales. After the closings, which will cut its domestic workforce by 17%, Circuit City will have 566 stores.
Additionally, Circuit City plans to begin renegotiating certain leases in the hope of lowering its rental costs.
Earlier this year,
( BBI) offered to acquire Circuit City, but it later dropped the bid.
This article was written by a staff member of TheStreet.com.