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CORRECTED - Circuit City weighing shutting stores, job cuts-WSJ
October 20, 2008 / 7:20 AM / in 9 years

CORRECTED - Circuit City weighing shutting stores, job cuts-WSJ

(Corrects headline to show that company is considering shutting stores and job cuts, not that it will do so)

Oct 20 (Reuters) - U.S. electronics retail chain, Circuit City (CC.N) 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 (FCN.N) 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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