US Consumer Electronics company Circuit City has revealed plans to shut down 155 stores across the United States and shunning thousands of jobs as the company looks out to return to profitability.
One in every six employees at Circuit City will be issued a pink slip by the end of the year which will have only 545 stores left. Circuit City had almost 46,000 employees at the beginning of March 2008.
The company has been particularly hit hard by (very) soft trading conditions and declining consumer confidence.
Earlier this year, Blockbuster offered more than USD 1 billion to acquire the company which would have valued the company at USD 18 billion.
Circuit City shares are currently up by nearly 40 percent at 36 cents, but this is no consolation for the company as its share price fell by nearly 91 percent since the beginning of the year, bringing the company's market capitalisation to only USD 65 million
This is in stark contrast with Best Buy's Fortune which has seen its shares value soar in the past few hours as its Chief Operating Office, Brian Dunn, announced that it is considering buying its smaller rival's stores.
Best Buy has been going from strength to strength and back in May 2008 managed to buy a 50 percent stake in Carphone Warehouse giving it a lead start in the European consumer electronics market.
Earlier this month, Carphone Warehouse announced that it is bucking the current trend and is planning to open 100 new stores in UK.