Circuit City to break leases after scuttling auction

FROM TWICE: Retailer to close 155 underperforming stores

By Alan Wolf of TWICE -- Video Business, 12/18/2008

DEC. 18 | FROM TWICE: RICHMOND, VA.—Circuit City plans to reject the leases for 154 stores slated for closure after failing to auction off the properties.

The retailer is shutting a total of 155 underperforming stores, with liquidators Hilco and Gordon Brothers conducting fire sales at 154 of the locations. The chain is holding its own liquidation sale at the remaining store.

Most of the locations will be closed before Christmas, Circuit City spokesman Bill Cimino told TWICE, with the balance to be shuttered by the end of the month.

A federal bankruptcy court authorized Circuit City to auction off 154 of the leases to help raise funds for the chain, but an insufficient number of bids were received. Cimino said the dearth of bids “was not a surprise” given the weak economic climate.

Read the full story on TWICE.com