• November 3, 2008

Circuit City Stores, which has been battling its own liquidity issues in a bruising retail environment, says it will shut down 155 stores in 55 markets immediately, eliminating 17% of its workforce.

The electronics retailer says it is "considering all available options and alternatives to restructure its business." It will also drastically cut the number of planned new stores, and aggressively renegotiate some leases.

The Richmond, Va.-based chain chalked the decision up to a downturn in consumer spending in the last several weeks, certain vendors holding back, and turmoil in financial markets. The store closures mean that it will exit 12 U.S. media markets, leaving it with 566 stores.--Sarah Mahoney