As The Doors' Jim Morrison once sang, This is the end, retailer Circuit City Stores, Inc. (NYSE: CC) now sings the lyrics, referring to its declining business. As expected, the second-largest consumer electronics chain in the U.S. will be closing 155 stores across the U.S. and even exit 12 markets completely. Perhaps the sale of those closed locations and the shuttering of all those employees will put the retailer back into the black, if only slightly.Those 155 stores? They represent 20% of the company's overall locations. In order to conserve cash and try to break over the $1/share level again (CC shares closed at $0.26 Friday), the retailer will lay off thousands of employees as it closes 155 stores. While this may not spell the start of profitability for the retailer, it has to do something. Nobody wants to buy the company -- even at its fire sale stock price -- and competitor Best Buy, Inc. (NYSE: BBY) is literally pummeling it into the ground at every turn.
The retailer recently received a letter from the NYSE as its share price are violating the exchange's minimum covenants.
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