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Retailer closing 19 stores

Monday, Feb. 9, 2004 | 11:18 a.m.

SUN STAFF AND WIRE REPORTS

RICHMOND, Va. -- Circuit City Stores Inc., the second- largest U.S. electronics chain, today said it will close 19 unprofitable superstores by Feb. 23, eliminating 901 jobs.

Circuit City expects to have about $35 million in after-tax expenses related to the closings, the company said in a statement. The 19 stores aren't likely to generate positive cash flow, it said.

There are four stores in the Las Vegas area. None are among the stores scheduled to close.

Chief Executive Alan McCollough has been cutting costs as rival Best Buy Co. has taken sales from Circuit City. Sales at Circuit City stores open at least a year dropped 2 percent in December, the second consecutive December of declining sales.

Circuit City will have 600 superstores and five stores in malls after closing the stores, which had revenue of $151 million in 2003. It expects to open as many as 70 superstores in the fiscal year beginning in March, with slightly more than half involving relocation of existing stores.

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