“Circuit City Stores Inc. said Monday it’s shutting 155 U.S. underperforming stores, reducing future store openings and renegotiating leases to help preserve cash after its liquidity deteriorated and vendors tightened the struggling electronics retailer’s payment terms,” Andria Cheng reports for MarketWatch.
“As a result of the closings, Circuit City’s exiting U.S. 12 markets, and management’s considering all available options and alternatives to restructure its business,” Cheng reports. “The company also halted the opening of at least 10 locations that it had planned for this year while suspending openings completely next year and asking landlords for lower rents on some of its leases. As of Oct. 31, Circuit City had 712 stores and nine outlets in the U.S.”
“Shares of larger rival Best Buy Co. [rose] on expectations that it will pick up additional market share as a result of Circuit City’s store closings,” Cheng reports.
Full article here.
[Thanks to MacDailyNews Reader “John C.” for the heads up.]
MacDailyNews Take: As MDN reader “John C.” pointed out when he sent us this link, Circuit City does not carry Apple Macs (they do carry iPods and Apple TV). Best Buy does carry Macs – along with iPod and Apple TV, too. This development could positively affect Apple as former Circuit City customers head on over to their local Best Buy and finally get a chance to see and touch superior personal computing on display.