Circuit City advised Blockbuster can't finance bid

ATLANTA (Reuters) - Circuit City Stores Inc CC.N said on Wednesday that its financial adviser, Goldman, has advised the retailer that it believes Blockbuster Inc (BBI.N) is not able to complete its proposed buyout of the electronics firm in light of current financing conditions.

"Circuit City awaits a viable financing structure that is predictably executable by Blockbuster given its current constraints of size and capital structure before it would be appropriate to allow further due diligence," the company said in a statement sent to Reuters.

The statement came in response to a letter from Mark Wattles, an investor who has nominated five people for Circuit City's board, that asked the retailer to open its financial books to Blockbuster.

(Reporting by Karen Jacobs; Editing by Gary Hill)