RICHMOND, VA-Circuit City Stores Inc. plans to close 69 stores throughout the world as part of a plan to improve its financial performance. Seven of those stores will be located in the US while the remaining will be throughout the retailers international portfolio.

"Because of the intensified gross margin pressures that we saw in the third quarter within the flat panel television category, we launched efforts to accelerate the timing of planned initiatives to improve sales and gross margin, as well as improve the efficiency of our expense structure," says Philip Schoonover, chairman president and CEO of Circuit City, in a statement.

By the end of this month, Circuit City expects to have closed all seven of the Superstore locations in the US. Total the stores brought in $71 million worth of revenue in 2006. This makes them cash flow negative or low cash flow locations according to a release on the decision. The exact location of the closing stores was not identified.

A distribution center in Louisville, KY, which houses store fixtures and signage, will also be shuttered.

Internationally, 62 under-performing locations will close. Previously the company announced plans to sell back 92 Rogers Plus stores to Rogers Wireless Inc. According to Circuit City executives, the two decisions will remove the company from one region and four districts.

The internal leadership of the company has also undergone changes. Douglas Moore, EVP and chief merchandising officer is no longer with the company and David Mathews will now lead the merchandising marketing, services and supply chain teams. The changes are meant to improve execution and accountability.

Beyond stores closing and leadership changing, Circuit City could see other changes in the next couple months. "Other recommendations are being developed, and we expect to implement them over the next six months," Schoonover says. "The steps we are taking today represent the initial efforts toward getting our cost structure more in line with today's marketplace."

Circuit City's stock rose more than a dollar to $21.67 by the end of the business day. Circuit City has more than 600 stores throughout the US and 900 stores outside the country. According to the company's most recent annual report, filed last April, net sales totaled $11 billion in the US and $623.7 million internationally.