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[h2]Circuit City to shutter 155 stores, locations to go public tomorrow[/h2]
by Joshua Topolsky, posted Nov 2nd 2008 at 3:40PM
According to a slew of tips we've received, Circuit City will be closing down 155 of its retail locations, possibly even before Black Friday. Right now details are sketchy, but it seems that the company's traditional "holiday kickoff" meeting was actually a "holiday layoff" discussion instead. Apparently, a full list of store locations getting the axe will be revealed. In the words of a current employee:
"I'm an employee @ Circuit City and today there was a mandatory store meeting for the holiday season and to welcome all the seasonal employees. There was also some tension as rumors were rampant the days before that we were all going to find out we were out of a job today. Luckily, but still somehow unfortunately, I'm still an employee of Circuit City. The same can't be said for the employees of the 155 stores that are closing, possibly even before black Friday. The list of stores that are shutting down will be made public tomorrow. The idea behind closing the stores before Black Friday is to transfer product from the failing stores to the stronger ones to save some money."
This makes sense given the rumors we heard in October and the fact that the company's stock has been been essentially put on death watch by the NYSE -- but that surely won't soften the blow to everyone whose job will be affected by this. If you have more detail on the situation, feel free to drop us a line.
[Thanks to everyone who sent this in]
October 31, 2008 3:01 PM PDT
[h1]Circuit City gets delisting notice from NYSE[/h1]
Posted by Erica Ogg 11 comments
Things are getting worse at Circuit City.
The embattled electronics retail chain was notified October 24 by the New York Stock Exchange that its stock listing price is so low it's on the verge of being delisted.
(Credit: Circuit City)
According to a form Circuit City filed with the SEC Thursday, the NYSE said the company's stock was "below criteria" because the average closing price was less than $1 per share for the 30 previous days. NYSE requires any company's minimum average over that time period to be $1.
Circuit City's stock closed Friday down 4 cents to reach 26 cents.
Now that Circuit City has received the notice, it has six months to get the stock's act together. As long as the average 30-day closing price is more than $1 sometime during the next six months, it can stay listed.
Circuit City has 10 days to respond to the NYSE that it plans to get its stock back above $1. In the meantime, the company's CC ticker symbol will be followed by a ".BC" to show it's below continued listing standards.
The country's second-largest electronics retail chain behind Best Buy has been in turmoil since posting a huge loss at the end of 2007. The CEO recently stepped down, and the company is looking at ways to turn itself around, including shutting some stores.
Yikes.
(sorry if posted)
