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Circuit City to Liquidate Remaining U.S. Stores
Four liquidators to sell merchandise in remaining 567 U.S. stores. More than 35,000 jobs will reportedly be lost.

Circuit City has reached an agreement with four liquidators to sell the remaining merchandise in its 567 U.S. stores, the Associated Press is reporting.

After failing to find a buyer or means to refinance, the second-largest CE retailer has appointed Great American Group LLC, Hudson Capital Partners LLC, SB Capital Group LLC and Tiger Capital Group LLC as liquidators.

The Wall Street Journal reported earlier on Friday that Mexican billionaire Ricardo Salinas Pliego, Golden Gate Capital, a San Francisco-based private equity firm, and liquidators Gordon Brothers Retail Partners and Hilco Merchant Resources emerged as the leading candidates to acquire the No. 2 CE retailer.

With the parties unable to reach a deal that would keep the liquidation from happening, CNBC reports that more than 35,000 jobs will be lost after the shutdown.

The embattled CE retailer filed for Chapter 11 bankruptcy in November and was optimistic that a restructuring deal would get done. Circuit City said it had $3.4 billion in assets and $2.32 billion in liabilities as of Aug. 31, 2008.

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