Circuit City may close 150 stores

RICHMOND, Va., Oct. 20 (UPI) -- Virginia electronics retailer Circuit City Inc. is considering a scale-back plan that would close about 10 percent of its stores, sources said.

The move would close 150 outlets and eliminate of thousands of jobs, The Wall Street Journal reported Monday.

Circuit City, which has 1,486 stores in the United States and Canada, hired the law firm Skadden, Arps, Slate, Meagher & Flom LLP as bankruptcy attorneys earlier this month, the Journal reported. In addition, it hired FTI Consulting Inc. and investment bank Rothschild Inc. to help find a way to raise emergency funds, the Journal said.

To avoid giving the impression that it won't be able to honor warranties on products its sells, Circuit City is trying to avoid any bankruptcy filing before the holiday shopping season, the Journal said.

Circuit City officials wouldn't divulge details of its planning but spokesman Bill Cimino said the company and its advisers "are conducting a comprehensive review of all aspects of our business to determine the best methods of accelerating our turnaround."