Circuit City to Close 19 Superstores

Circuit City Stores Inc. (Richmond, Va.), beset by slumping sales, management changes and takeover rumors, has announced the closing of 19 superstores plus five regional offices and one distribution center by the end of the month.

“Based on our continuing analysis of markets across the country, we have identified 19 superstores located in trade areas that we believe can no longer support a Circuit City superstore, leaving the locations with no reasonable expectation of positive cash flow and without relocation opportunities over the near term,” said W. Alan McCollough, the chairman and ceo who yesterday was relieved of his company presidency. “In many of the larger markets in which we are closing stores, we have added incremental stores in more vital trade areas or relocated stores to more attractive sites. The repositioning of our stores within these markets continues, and it no longer makes financial sense to keep some of the stores in those markets open.”

The locations include: Indianapolis and Bloomington, Ind.; Evergreen Park, Mount Prospect and Skokie, Ill.; Wichita, Kan.; Detroit, East Lansing, Southfield and Traverse City, Mich.; Columbus, North Olmsted, North Randall and Parma, Ohio; Jackson, Tenn.; Houston and Lufkin, Texas; Lynchburg, Va.; and Milwaukee.

The retailer also confirmed that a private plane registered to the company has crashed in Colorado carrying eight passengers, four of whom were employees of the company. No officers of the company were on board. The company said it would not make further comment until it could notify the families.