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Cedar Park Circuit City to close as company shuts down 9 Texas stores

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Written by Eric Pulsifer Monday, 03 November 2008

The Cedar Park Circuit City, located at 1335 E. Whitestone Blvd., is one of 155 stores in 28 states across the country that will be closing Nov. 4. Other locations to close in Texas include Circuit City stores in Houston, Dallas and Temple. The full list of closures can be found on the company's investor information page (http://investor.circuitcity.com).

According to the company, affected stores will not open on Nov. 4 and closing sales will begin on Nov. 5, with sales wrapping up by the end of the calendar year.

Citing waning consumer confidence and a weak retail environment, Circuit City announced they are taking actions to restructure the company, including closing 155 underperforming stores, renegotiating certain existing leases and suspending new store openings.

In a statement issued to investors, James A. Marcum, vice chairman and acting president and chief executive officer of Circuit City Stores, Inc. said, "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. 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 company has revised store opening plans for the current fiscal year and canceled 10 planned openings. Other than existing commitments, management intends to suspend store openings beginning in fiscal year 2010.

As a result of the store closures, Circuit City expects to reduce store operating, payroll and marketing expenses. The company reports closures will result in a reduction of approximately 17 percent of the domestic segment workforce.

Circuit City will continue to operate through 566 stores in 153 media markets, as well as online (http://www.circuitcity.com) and via telephone (1-800-THE-CITY).