Rome’s Circuit City is among 567 in the U.S. that the nation’s second-biggest consumer electronics retailer plans to liquidate. The closures, announced Friday, could send another 30,000 people into the ranks of the unemployed.
Rome’s store is near Mount Berry Square mall on U.S. 27 north.
Calls to the local store Friday were unanswered.
“This is the only possible path for our company,” James A. Marcum, acting chief executive, said in a statement. “We are extremely disappointed by this outcome.”
The company had been seeking a buyer or a deal to refinance its debt, but the hobbled credit market and consumer worries proved insurmountable. And bleak holiday sales results further weakened even the stronger retailers.
It was unclear what would happen to the company’s 765 retail stores and dealer outlets in Canada.
Circuit City filed for Chapter 11 bankruptcy protection in November as vendors started to restrict the flow of merchandise ahead of the busy holiday shopping season.
The liquidation is the latest big blow to the nation’s malls, which have suffered from a rise in vacancies as a slew of chains from Mervyns LLC to Linens ‘N Things have liquidated. But analysts say that the demise of Circuit City, whose stores range in size from 20,000 to 25,000 square feet, will hurt the fortunes of mall operators even more.
“It will bring to market a glut of big box spaces across the country,” said John Bemis, head of Jones Lang LaSalle Inc.’s retail leasing team. “It will have one of the largest impacts on big box real estate across the country.”
-Rome News Tribune