Circuit City will close three stores in Virginia as part of a move to preserve cash at the badly bleeding electronics retailer. Two are in northern Virginia and one is in Charlottesville.
“Since late September, unprecedented events have occurred in the financial and consumer markets causing macroeconomic trends to worsen sharply. The weakened environment has resulted in a slowdown of consumer spending, further impacting our business as well as the business of our vendors,” said James A. Marcum, vice chairman and acting president and chief executive officer in a statement.
“The combination of these trends has strained severely our working capital and liquidity, and so we are making a number of difficult, but necessary, decisions to address the company’s financial situation as quickly as possible.”
The cuts might be overtures to a bankruptcy filing.
Read the AP’s story here.