NEW YORK Nov 5 Electronics retailer Circuit
City Stores Inc (CC.N) entered into an agreement with two
liquidation firms to handle all but one its planned 155 store
closures and liquidation sales as it mulls options to
The liquidation firms, Hilco Merchant Resources and Gordon
Brothers Retail Partners, would pay it an amount equal to 72
percent of the cost value of merchandise included in the
liquidation sales, Circuit City said in a filing with the U.S.
Securities and Exchange Commission on Wednesday.
The liquidation firms will get an agent's fee equal to 3.5
percent of cost value of the merchandise, Circuit City said.
Earlier this week, Circuit City said it would cut 17
percent of its U.S. workforce, as it shutters 155 stores in the
face of a deteriorating cash position and tighter credit terms
The liquidation sales will go on from Nov. 5 to Dec. 31 and
may be extended, Circuit City said, adding that it would close
the one remaining store on its own.
Payments to the liquidation firms and Circuit City would be
made from the proceeds of the liquidation sales, the company
(Reporting by Aarthi Sivaraman; Editing by Gary Hill)