Circuit City puts hold on distribution center

RICHMOND, Va. Circuit City has halted construction of a new distribution center in Pennsylvania. The $45 million facility in Covington Township near Scranton, Pa. was due to open by the end of the year and replace two existing centers in Pennsylvania and Maryland.

Circuit City did not give a specific reason for the hold on construction, though a spokesman said the retailer has decided to “step back and take a look at it.” The facility is now tentatively scheduled to open in 2009. In the mean time, the two distribution centers it was slated to replace will remain open.

In June, Circuit City reduced its capital-spending forecast for its current fiscal year from $130 million to $150 million to $120 million to $140 million. It still plans to open or relocate 45 to 55 stores during the year.