Circuit City to liquidate all 567 stores nationwide

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The bad news on Main Street today, shoppers, is at Circuit City.

Circuit City Stores Inc., the nation’s second-biggest consumer electronics retailer, said today that it had failed to find a buyer while in Chapter 11 bankruptcy proceedings and would liquidate its 567 U.S. stores, the Associated Press reported. The closures could send 30,000 people into the ranks of the unemployed.

‘This is the only possible path for our company,’ James A. Marcum, acting chief executive, said in a statement. ‘We are extremely disappointed by this outcome.’

The liquidation of Circuit City is the latest fallout from the worst holiday shopping season in four decades. People have slashed their spending since the financial meltdown in September as they worry about their job security and declining retirement funds.

Other recent casualties include KB Toys, which filed for bankruptcy protection in December and is liquidating stores. Department store chains Goody’s Family Clothing and Gottschalks Inc. both filed for bankruptcy this week -- Goody’s plans to liquidate, and Gottschalks hopes to reorganize. Industry experts expect more bad news in the coming months as spending probably will deteriorate further.

Circuit City said in court papers that it had appointed Great American Group, Hudson Capital Partners, SB Capital Group and Tiger Capital Group as liquidators.

‘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,’ Marcum said.

-- Patrick McMahon