Circuit City closing 62 stores in Canada
Last Updated: Thursday, February 8, 2007 | 4:14 PM ET
CBC News
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Circuit City Stores Inc. said Thursday it will close 62 underperforming company-owned The Source stores across Canada.
About 140 full-time employees and 80 part-time workers in Canada will be affected by the closures.
The company also said it will cut approximately 70 positions from its Canadian store support centre and in field management operations.
Circuit City, which is based in Richmond, Va., has over 800 retail stores and dealer outlets in Canada. Circuit City bought its Canadian stores from InterTAN in 2004 and rebranded them from their previous Radio Shack name.
The head of Circuit City said the company needed to boost its financial performance.
"Because of the intensified gross margin pressures that we saw in the third quarter within the flat panel television category, we launched efforts to accelerate the timing of planned initiatives to improve sales and gross margin, as well as improve the efficiency of our expense structure," Circuit City chief executive Philip Schoonover said in a statement.
In the United States, Circuit City plans to shut down seven superstores and a distribution centre located in Louisville, Ky.
Shares of Circuit City rose $1.07 US to close at $21.67 on the NYSE.
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