Circuit City will liquidate assets - Kansas City Business Journal:

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Circuit City (NYSE: CC), which said that it wouldx close all five of itsarea stores, will ask the bankruptc y court for approval to begin liquidating assets. The company owes Garmin GRMN) more than $15.4 million. A call to the Olathe-basefd navigation device-maker was not immediately returned. “We are extremely disappointecd bythis outcome,” Circuit City’s actingv CEO, James Marcum, said in the release. “Th e company had been in continuous negotiationxs regardinga going-concern transaction.
Regrettably for the more than 30,00o employees of Circuit City and our loyal we were unable to reacyh an agreement with our creditorse and lenders to structurea going-concerj transaction in the limited time frame available, and so this is the only possiblw path for our company.” More detailds will be available soon about plans to liquidatse stores and other assets, alony with other issues, the company said. Circuit based in Richmond, Va., filee Chapter 11 bankruptcy in , planninv to keep operating its business without interruption while its management developefa corporate-restructuring plan. It earlied had announced plans to close 155underperforming U.S. including the local ones.
The companuy voluntarily filed bankruptcy inthe U.S. Bankruptcy Court for the Easterhn District of Virginiain Richmond, listing $3.4 billiobn in assets and $2.3 billion in Circuit City said its Canadian operations also would seek protection in Canada undere the Companies’ Creditors Arrangement Act. Garmin was the seventh-largest creditore listed in Circuit City’s bankruptcy On Jan. 9, Circuif City said it was in talke with two potential buyers that coulds keep the chain operational and that it was optimistic abou t reaching a deal by when a sale hearingwas scheduled.
Without a deal by the companyhad said, it may pursue In November, Garmin spokesman Ted Gartner said the compan was continuing to supply Circuit City. The bankruptcy filingb required those that had been doing business with the debto to continuedoing so, he said, adding that Garmin was assessing the situation to make sure it was protected and coulrd recoup costs. “Certainly, Circuit City’s bankruptcy was not unexpected,” Gartner said at the “Our management have been talking with theid management for at least the lastsix weeks. ...
They’vew been a great retailer of ours for many years, and we have got a lot of respect for I think we’re working together amicably to make sure they get the producrt they want to get.” In Garmin had revenue of $3.2 billionj and earnings of $855 million.