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Dimming The Lights

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By RICHARD MULLINS

rmullins@tampatrib.com

Published: November 4, 2008

Circuit City Stores Inc. said Monday that it is closing 20 percent of its U.S. stores, but the Tampa Bay area was spared in the latest cutbacks by the struggling electronics retailer.

The nation's No. 2 electronics retail giant, based in Richmond, Va., said the move is aimed at trying to return to profitability. The plan announced Monday involves shutting down 155 stores out of more than 700 nationwide, including seven in Florida. No Tampa area stores were on the closure list circulated by the company.
Circuit City said the affected stores are unlikely to open today and that store-closing sales will begin on Wednesday.

The move comes as Circuit City heads into a crucial holiday shopping season that could determine its future, amid a slowdown in consumer spending that has even the strongest retailers worried.

"The weakened environment has resulted in a slowdown of consumer spending, further impacting our business as well as the business of our vendors," James A. Marcum, vice chairman and acting president and chief executive officer, said in a statement. "The combination of these trends has strained severely our working capital and liquidity."

Marcum called the decision to close stores "difficult, but necessary."
Circuit City also provided updates on other aspects of its business, including restrictive actions taken by vendors, including limiting credit for purchases.

But the company said that while it is working to secure support from vendors, the "current mix of terms and credit availability is becoming unmanageable for the company."

The company has had only one profitable quarter in the past year, posting a wider second-quarter loss in September with a 13 percent decline in sales at stores open at least a year. Its results have weakened as the company faces significant declines in traffic, heightened competition from rival Best Buy Co. and others, and a weakened brand position.

CIRCUIT CITY'S FLORIDA CLOSURES

Jacksonville

•Orange Park, 6155 Youngerman Circle

•Oakleaf Town Center, 9625 Crosshill Blvd.

Naples

•13585 Tamiami Trail

West Orlando

•751 Good Homes Road

Panama City

•427 East 23rd St.

Tallahassee

•2425 Apalachee Parkway

Vero Beach

•6560 20th St.

Information from The Associated Press was used in this report.

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