Circuit City to shut stores, reshuffle management

U.S. electronics retailer giant Circuit City Stores Inc. has said it will shut stores and revamp management to get back on track, The Wall Street Journal reported on Friday.

The chain expects to close seven of its 651 U.S. stores by the end of February and will shut 62, or about 11 percent, of its 547 company-owned stores in Canada, said the report.

Circuit City said it will close one of two distribution centers in Louisville, Ky., and take goodwill-impairment charges of 40 million dollars to 60 million dollars for its international segment.

The U.S. stores, in the middle of a multiyear turnaround, unexpectedly reported a fiscal third-quarter loss as an industrywide price war on flat-screen TVs punished profitability.

Source: Xinhua