After 60 years, Circuit City is finally going out of business.
Citing the poor economic climate, Circuit City is closing all of its 567 stores in the United States, and beginning the liquidation of inventory immediately. 34,000 will lose their jobs as a result of the closures.
Closing sales began as early as Saturday, January 17, and they will continue until existing inventory is closed. These sales are expected to last until the end of March. As soon as the inventory is gone, the stores will be closed.
The deals at the liquidation sales will potentially be very good, but the prices and discounts are not being announced. The liquidation is being run by a third party who will set prices and return policies during the transition.
The Circuit City website is already offline, so it appears that online purchases will no longer be possible. Consumers that still have gift cards must then use them in a store before the closures. After all the stores close, all gift cards will lose their entire value.
Warranties issued by Circuit City for past purchases are still valid, as they are backed by a third party company, Assurant Solutions.
For the thousands of people losing their jobs, they will receive either 60 days notice before being laid off or will receive 60 days worth of pay and benefits if they have been laid off without warning. A small number of staff will remain at the corporate headquarters in Richmond, VA, and the stores in Canada will be unaffected by the U.S. closures. Circuit City employees approximately 3,000 people in Canada.