See complete list of Circuit City Stores to be closed below.

Circuit City (NYSE:CC) will close 155 locations in 55 markets due to what company officials described as the company's "deteriorating liquidity position and the continued weak macroeconomic environment". See complete list of Circuit City Stores to be closed below. Circuit City will also reducing future store openings and aggressively renegotiate certain leases.

Over the past several weeks, waning consumer confidence and a significantly weakened retail environment have negatively impacted Circuit City's sales and profit margin to a greater degree than management had anticipated.

Following the company's second quarter results announcement, the company's liquidity position and the sharply worsened overall economic environment led some of Circuit City's vendors to take restrictive actions with respect to payment terms and the credit they make available to the company. Additionally, the recent disruption in the financial markets has contributed to certain of Circuit City's vendors experiencing insurmountable challenges with obtaining credit insurance for the company's purchases.

As a result of this and other considerations, certain of the company's vendors have set more restrictive payment terms than in previous quarters, including in some cases requiring payment before shipment. Vendors also have limited the credit available to the company for purchases, including in some cases not providing customary increases in credit lines for holiday purchases.

James A. Marcum, vice chairman and acting president and chief executive officer of Circuit City Stores, Inc. said, "Since late September, unprecedented events have occurred in the financial and consumer markets causing macroeconomic trends to worsen sharply. The weakened environment has resulted in a slowdown of consumer spending, further impacting our business as well as the business of our vendors. The combination of these trends has strained severely our working capital and liquidity, and so we are making a number of difficult, but necessary, decisions to address the company's financial situation as quickly as possible."