In Chapter 11 protection since November 2008, Circuit City had announced on Jan. 5 that it was in negotiations with two potential buyers, but had to complete a sale agreement by Jan. 16 to avoid liquidation.
"We are extremely disappointed by this outcome. The company had been in continuous negotiations regarding a going concern transaction. Regrettably for the more than 30,000 employees of Circuit City and our loyal customers, we were unable to reach an agreement with our creditors and lenders to structure a going-concern transaction in the limited timeframe available, and so this is the only possible path for our company," said James A. Marcum, vice chairman and acting president and chief executive officer for Circuit City Stores, Inc., in a press release.
Still to be announced are more details in the near term about the plans for the liquidation of its 567 stores in the United States, the status of the company's Web site and firedog services operations, the status of its Canadian operations and plans for the company's bankruptcy proceedings.
The retailer also said that it does not anticipate any value will remain from the bankruptcy estate for common equity holders, although this will be determined in the continuing bankruptcy proceedings.
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