Circuit City Closing Stores

RICHMOND, Va. (AP) - In an effort to make itself profitable
again, Circuit City says it's closing about 20 percent of its U.S.
stores, including two in Alabama.
The affected stores are in Anniston and Trussville.
The electronics retailer says the 155 stores to be shut down
will not open tomorrow, but on Wednesday they'll begin store
closing sales.
The Richmond, Virginia-based company has been operating more
than 700 stores in 55 markets across the country. The closings will
prompt the layoff of about 17 percent of Circuit City's U.S. work
force. The company is also cutting plans for store openings.
Circuit City has had only one profitable quarter in the past
year. Its stores have seen a significant decline in traffic as they
face heightened competition from Best Buy and others. The company
says its vendors have taken restrictive actions and that the
"current mix of terms and credit availability is becoming
unmanageable."

(Copyright 2008 by The Associated Press. All Rights Reserved.)