Circuit City to Shut 155 Stores

Circuit City (CC) unofficially starts the liquidation process today..

Circuit City Stores, Inc. (NYSE: CC) today provided an update on its liquidity position and its previously announced ongoing comprehensive business review. Due in part to its deteriorating liquidity position and the continued weak macroeconomic environment, the company has decided to take certain restructuring actions immediately, including closing 155 domestic segment stores, reducing future store openings and aggressively renegotiating certain leases. The company also is considering all available options and alternatives to restructure its business.

Here is the map of the closures:

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Retail expert Howard Davidowitz calls the move one of "desperation." Although there's a "small chance of success" he says the most-likely next step will be "a formal bankruptcy." Although that would leave Best Buy (BBY) as the remaining stand-alone electronics chain, Davidowitz tells Larry Kofsky it will remain under competitive pressure from the 8,000-pound gorilla - Wal-Mart (WMT).

Is there anyone out there that didn't see this coming?