The Source by Circuit City still open as U.S. parent liquidates assets
Last Updated: Friday, January 16, 2009 | 2:23 PM ET
CBC News
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Circuit City Stores Inc. will liquidate its 567 remaining U.S. stores, while the company's Canadian subsidiary will remain in operation.
In court papers filed Friday in Virginia, Circuit City revealed its plans after it failed to find a buyer or arrange a refinancing deal.
"Regrettably for the more than 30,000 employees of Circuit City and our loyal customers, we were unable to reach an agreement with our creditors and lenders to structure a going-concern transaction ... and so this is the only possible path for our company," the firm's vice-chairman, James Marcum, said in a statement.
Circuit City, the second-largest U.S. electronics retailer behind Best Buy, is based in Richmond, Virginia.
The company filed for Chapter 11 bankruptcy protection in November 2008. At that time, its Canadian subsidiary, InterTAN Canada Ltd., the owner of 765 The Source by Circuit City stores, filed for creditor protection in Canada.
In a recent statement, InterTAN said it has been trying to sell the Canadian operations as a "going concern," adding that in December it received expressions of interest from multiple qualified and credible bidders. InterTAN said it expects to receive formal proposals before the end of January.
InterTAN also said its retail sales over the holiday period were above forecast and that the Canadian business remains strong.
An InterTAN spokesperson said that "the Source stores are not part of the U.S. liquidation process and that all stores remain open for business."
With files from the Canadian PressShare Tools
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