Circuit City weighing shutting stores, job cuts: WSJ

Mon Oct 20, 2008 7:44am EDT

A Circuit City store is seen in Dallas, Texas June 19, 2008. REUTERS/Jessica Rinaldi

A Circuit City store is seen in Dallas, Texas June 19, 2008.

Credit: Reuters/Jessica Rinaldi

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(Reuters) - U.S. electronics retail chain, Circuit City is considering closing at least 150 stores and cutting jobs, the Wall Street Journal said citing people familiar with the company.

Earlier this month, the retailer hired Skadden, Arps, Slate, Meagher & Flom LLP and it has also retained FTI Consulting Inc to develop a turnaround plan as well as investment bank Rothschild Inc to guide talks with banks and secure emergency financing, the paper said.

The company's advisers are trying to line up additional financing but so far lenders have shown little interest, the paper said.

"The management team, board of directors, and its strategic financial advisers are conducting a comprehensive review of all aspects of our business to determine the best methods of accelerating our turnaround," Circuit City spokesman Bill Cimino told the paper without giving details of the plans.

A spokesperson for the company could not be immediately reached for comment by Reuters.

(Reporting by Savio D'Souza in Bangalore)

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