Circuit City Shorts Out

Another big box retailer bites the dust:

Circuit City (CC) has reached a deal to be fully liquidated after failing to find a buyer or a refinancing deal.

The electronics retailer reached an agreement with liquidators to sell the merchandise in its 567 domestic stores.

"We are extremely disappointed by this outcome. The company had been in continuous negotiations regarding a going concern transaction,” said James Marcum, vice chairman and acting president and chief executive officer, in a statement.

“Regrettably for the more than 30,000 employees of Circuit City and our loyal customers, we were unable to reach an agreement with our creditors and lenders to structure a going-concern transaction in the limited timeframe available, and so this is the only possible path for our company."

People with Circuit City warranties might be out of options.

"If the warranty is from manufacturer, they should be fine," said Jack Gillis, director of public affairs for the Consumer Federation of America. "You will need a proof of purchase, like an original receipt, but if they have a service contract from the company then they may be out luck."

News of the liquidation sent shares falling 8% to 3.2 cents each in midday trading on the New York Stock Exchange.

You know a company is in trouble when you can buy a controlling stock interest with the change in your pocket.