As I noted at last Tuesday's Common Council meeting, Circuit City plans to close 20 percent of their stores. Today the company made the news official and put out a list of stores that will close. Only one Wisconsin location (in Milwaukee) is scheduled to close. The Grand Chute location will remain open, but Gannett's coverage (Associated Press) includes this ominous statement:
Circuit City also said it will further reduce new store openings and plans to work with landlords to renegotiate leases, lower rent or terminate agreements.
The company's official statement said:
"due in part to its deteriorating liquidity position and the weak macroeconomic environment, the company has decided to take certain restructuring actions immediately, including closing 155 domestic segment stores, reducing future store openings and aggressively renegotiating certain leases. The company also is considering all available options and alternatives to restructure its business."
Even more concerning is this quote from a Standard & Poors Equity Research analyst:
"We think there is a fair chance (Circuit City) will be forced to file for Chapter 11" bankruptcy protection.
I wonder if Shopko is having second thoughts about opening a new Oshkosh store, TIF assistance or not.
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