Circuit City, the big computer and electronics retailer, announced Monday, Nov. 3, that it’s closing 155 of its underperforming stores and is trying to renegotiate leases on its other operations to save money.
The company has more than 700 stores in the U.S. and sells products in nearly 800 separately owned retail outlets in Canada. The closings will result in a reduction of about 17 percent of the company’s U.S. work force, Circuit City officials said.
The Wall Street Journal reported that the company has not had a profitable quarter in more than a year and was down to less than $100 million in cash according to its most recent quarterly financial report.
According to Market Watch, word of the closings caused Circuit City shares to jump 46 percent in Monday’s midmorning trading. But some of Circuit City’s vendors are now asking for payment up front before they’ll ship merchandise to the stores.