Report: Circuit City to Close Stores, Cut Jobs

New York City Circuit City Stores Inc. is considering a plan to shutter at least 150 stores and cut thousands of jobs as an alternative to filing Chapter 11 bankruptcy, the Wall Street Journal reported Monday.

The Journal quoted unnamed sources as saying the store closings and furloughs would be an alternative for the troubled consumer-electronics retailer to filing for bankruptcy-court protection.

Earlier this month, the electronics retailer hired Skadden, Arps, Slate, Meagher & Flom LLP—the law firm that oversaw the Chapter 11 reorganization of Kmart—as its bankruptcy counsel, according to the report.

Circuit City has 714 stores in the United States and another 772 stores and outlets in Canada.