According to the Wall Street Journal, Circuit City is considering closing 150 stores and cutting thousands of employees in order to save costs and avoid declaring bankruptcy.
Circuit City announced that the company lost $240 million on net during the second quarter of fiscal 2009, after sales fell 9.5% to $2.4 billion.
Blockbuster announced that it would no longer pursue an acquisition of Circuit City, verifying market expectations that the consumer electronics retailer would be hard pressed to find a buyer for the company which lost $164 million on net in the first quarter of FY09 ended in May 2008.
Circuit City announced that sales fell 7.4% in the first quarter of fiscal 2009 as comparable store sales fell 11.3%. Profitability also decreased at the consumer electronics retailer as gross profit margin fell from 22.5% to 20.8% and the company posted a $164 million net loss for the quarter. The poor results have stirred concerns that the company won't be able to find a buyer to acquire the struggling retailer.
Blockbuster proposes "game-changing retail concept" in buying CC.
Circuit City reported a Q2 loss on account of sales of lower-margin television sets and personal computers. The company suffered a Q2 net loss of $62.8 million, or 38 cents a share, as compared to a net income of $10 million, or 6 cents a share, in the same quarter last year.
Circuit City announces poor earnings for the first quarter, attributed largely to slow TV sales. They also withdraw their financial outlook for the first half of the fiscal year.
Chief Financial Officer Michael Foss announced his pending departure from Circuit City to join privately held Petco.
To improve it's financial performance, they have decided to close 62 under performing stores internationally, and 7 Super Centers domestically.
Circuit City lowers their financial outlook for fiscal year 2007, adjusting expected net sales growth and same store sales growth figures downwards by about 2%.
Circuit City Stores, Inc. announced the closing of 19 Superstores.