Circuit City Stores Inc. might close 150 stores and opt for job cuts to stall its march towards bankruptcy, according to a WSJ report. Thousands of people might receive their termination letters, if there is any truth in this report. The retailer’s shares shot up by 20% on the back of this report.
Although the company’s spokesman Jim Babb refused to comment on the report, he admitted that the company was “assessing the productivity of our asset base.” With no signs of the ongoing financial storm relenting in the near future, the holiday season might not bring any relief for Circuit City – and its competitors. Apparently, the mess it is currently ensconced in has left Circuit City few choices.
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