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Circuit City agreed yesterday to close all its 567 stores and begin selling off its assets as early as today, throwing 34,000 employees out of work and becoming the first major post-holiday casualty of the retail slump. 2 electronics retailer, which had been restructuring under Chapter 11 bankruptcy protection, and its creditors agreed to the closing after negotiations with two potential buyers seeking to continue the company as a going concern broke down.

The company said that no value will remain for shareholders.

Some employees were notified that they would lose their jobs and certain stores would begin close-out sales as early as Saturday.

“Since my childhood, that’s been where you go to buy electronics — Circuit City,” said 37-year-old Sonya Webb, who was standing outside a store in Chattanooga, Tenn., watching as an employee set a 46-inch Sony television in her car.

By 1959, Wards Company operated four television and home appliance stores in Richmond.

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Circuit City is one of the largest retail bankruptcies in the current U. Private equity firm Golden Gate Capital and Mexican retail and media tycoon Ricardo Salinas Pliego, who owns more than 28 percent of the company, had indicated an interest in bidding for the company, Gregg Galardi, a lawyer representing Circuit City, told the bankruptcy court in Richmond. Shares of Best Buy, which analysts have said stood to gain longer-term if Circuit City went out of business, closed up 8.1 percent.The company, which had leased floor space from the Zody's department stores as well as other department stores, began acquiring retail stores and turning them into Circuit City Superstores.The first of these replacements occurred in Knoxville, Tennessee; Charleston, South Carolina; and Hampton, Virginia.Over the last week, retailers and other businesses have rolled out a steady drumbeat of job cuts.This week, Saks announced it would cut about 1,000 jobs and Neiman Marcus said it plans to lay off 375 people.




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